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On November 26, 2018, Prime Minister Shinzo Abe held a joint meeting of the 15th meeting of the Council on Economic and Fiscal Policy in 2018, the 22nd meeting of the Council on Investments for the Future, the Council on Overcoming Population Decline and Vitalizing Local Economy, and the Council for Promotion of Regulatory Reform, at the Prime Minister’s Office.
 
At the meeting, discussion was held on the proposed interim review of the economic policy direction, and the Basic Principles of FY2019 Budget Formulation.
 
Based on the discussion, the Prime Minister said,
 
“Today, we have invited the representative members from the relevant major councils so as to conduct an interim review on the future direction of the Abe Cabinet’s main economic policies, including the Growth Strategy, regional revitalization, and regulatory reform.
 
The Growth Strategy plays the central role in our economic policies; we will promote structural reforms, looking ahead to the future, focusing on three pillars: the realization of Society 5.0; the reform towards the social security system oriented to all generations, which is our greatest challenge; and the strengthening of policy measures targeting various regions. On the points raised at today’s review, I would like to make a decision by next summer over the implementation plan including a three-year roadmap, while closely paying attention to the views of the ruling parties. With regard to countermeasures for the planned increase in the consumption tax rate, we have presented the basic policy based on the proposals from the ruling party. For instance, as for leveling the fluctuation between rush demand and the subsequent decrease in demand, we intend to establish guidelines and allow flexible pricing in order to enable an efficient and effective response; we will also shorten the duration of the enactment of the point reward system, which is aimed at supporting micro, small, and medium sized enterprises, and secure a sufficient rate of reward. We will extend supports to those who need the issuance of premium vouchers. Furthermore, we will consider measures such as reducing the tax burden on vehicle ownership, in order to firmly bolster consumption. Towards our forthcoming decisions in the budget formulation process at the end of this year, I would like Minister Motegi to hold in-depth consideration and sum them up, coordinating with the ruling parties, regarding these countermeasures for the planned increase in the consumption tax rate.
 
Today, I received the response to my inquiry from the Council on Economic and Fiscal Policy on the policy for the Basic Principles of FY2019 Budget Formulation. The economy will continue to be the highest priority of the Abe Cabinet. While closely monitoring the future prospects, such as the trends of the global economy, we have to firmly sustain the recovery trajectory of the economy. At the same time, while advancing steady efforts for fiscal consolidation, we aim to formulate a streamlined budget, including putting in place the necessary budget measures to respond to important policy issues. I would like Minister Motegi, Minister Aso, and other relevant ministers to take thorough actions in these matters.”