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[Provisional Translation]

Prime Minister Shinzo Abe held the 19th meeting in 2015 of the Council on Economic and Fiscal Policy at the Prime Minister's Office.

At the meeting, there was a discussion on the “Basic Principles of FY2016 Budget Formulation (draft),” “towards a robust economy that gives rise to hope,” and “various matters pertaining to comprehensive economic and fiscal reform (social security, social infrastructure development, and other matters).”

Based on the discussion, the Prime Minister said,

“While increasing the nominal GDP to 600 trillion yen by around the year 2020, along with aiming for the establishment of a continuous positive economic cycle through measures such as wage increases, we must also implement appropriate measures in regard to the minimum wage, in accordance with the government-labor-management agreement that was reached last December.

To that end, it is important to increase the minimum wage at the rate of approximately 3% annually, while simultaneously considering the growth rate of the nominal GDP. By doing so, we will aim for the national weighted average to reach 1,000 yen.

Towards achieving this raising of the minimum wage, we will implement improvement of business transaction conditions, and support to increase productivity for SMEs and small-scale business operators, and other initiatives. I will advise the Minister of Health, Labour and Welfare, and the Minister of Economy, Trade and Industry to thoroughly implement measures towards increasing the minimum wage.

I have asked the business world to provide further cooperation in regard to the improvement of business transaction conditions for SMEs.

In relation to the formulation of the Budget for FY2016, I would like the concrete direction and periods for implementation of all the matters for reform outlined in the Basic Policies for Economic and Fiscal Management and Reform 2015 to be clarified.

In regard to the field of social security, we will thoroughly implement measures to tackle the promotion of incentive reforms that encourage changes in the actions of relevant parties through the revision of healthcare reimbursements, and other matters; improving the in-depth visibility of regional differences in the medical and healthcare fields, and other matters; and the industrialization of public services.

Regarding social infrastructure development, we will focus our priorities on ensuring that factors such as the stock effects and accumulated benefits that improve the economy and the lives of the people over the long term can be manifested to the fullest possible extent. Furthermore, I would also like you to promote greater cost efficiency.

I would like you to advance greater visibility of these measures, and to thoroughly verify whether high-quality public services are being provided. I would like the Basic Principles of FY2016 Budget Formulation to be implemented in a manner appropriate for budget formulation in this, the first year of the Plan for Economic and Fiscal Revitalization. Thank you.”