Prime Minister Shinzo Abe held the 24th meeting of the Council on Economic and Fiscal Policy at the Prime Minister's Office.

During the meeting, discussion took place on 'local finance and regional revitalization,' 'realizing a positive cycle of the economy,' and the 'Basic Principles of FY2014 Budget Formulation.'

Based on the discussion, the Prime Minister said,

"The revival of the regions is a matter of utmost urgency. The Government must emphasize the implementation of policies aimed at reviving the regions, including the proposals received from the private sector members of the Council today to promote regional revitalization resulting from Tokyo's selection as the host city for the Olympic Games and to encourage the consolidation of local industries.
As for the FY2014 budget, thorough efforts must be made to secure the necessary budget. At the same time, we must fully ensure that the efficiency of the local finance budget is increased, in line with the national budget. Furthermore, it is necessary to shift gears from the crisis response mode following the global financial crisis, to a more normal mode. I would like to ask that relevant ministers continue to steadily work on these tasks.
An outline of the basic principles of budget formulation has been presented. Fully taking into account the discussions of the Council on Economic and Fiscal Policy to date, I would like to ask relevant ministers to deepen discussions and give shape to the compilation of the Basic Principles of FY2014 Budget Formulation.
The key to exiting deflation is realizing a positive cycle of the economy through wage increases. Through the Government-Labor-Management Meetings, I have been convinced that both the business community and the labor side have a deeper common understanding towards the realization of a positive cycle, and that the implementation of initiatives has begun. To ensure that Japan exits from deflation, I would like to ask Minister Amari for his continued efforts on this matter."