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On July 31, 2019, Prime Minister Shinzo Abe held the sixth meeting of the Council on Economic and Fiscal Policy in 2019 at the Prime Minister’s Office.
 
At the meeting, an intensive discussion was held on monetary policy, commodity prices and other issues. A discussion was then held on the economic and fiscal projections for medium to long term analysis and the guidelines for FY2020 budget requests.
 
Based on the discussion, the Prime Minister said,
 
“Today, the economic and fiscal projections for medium to long term analysis were reported. There can be no fiscal consolidation without economic revitalization. Under this basic policy, we will exert every effort for the appropriate and flexible management of economic and fiscal policies, with the aim of achieving our goals of a 600-trillion-yen economy by around 2020 and fiscal consolidation by FY2025.
 
I would like Minister Motegi to lead these efforts, working in close cooperation with the relevant ministers, in particular, Minister Aso.
 
We also finalized the FY2020 budget overview. With the guidelines for budget requests that were approved today, the Government will work as one to formulate a streamlined budget going forward.
 
In doing so, we will put in place appropriate measures, giving full attention to any fluctuations in demand brought about by the increase in consumption tax and the latest economic situation.
 
The increase in consumption tax rate is aimed at securing stable financial resources to enrich social security, such as providing early childhood education and childcare for free, and paying out subsidies to support pensioners. When we increase the consumption tax rate, it is important to implement all possible measures such as the smooth introduction of a reduced tax rate system, measures for small and medium-sized enterprises for passing on increases in cost, as well as points-based rebates and premium vouchers.
 
I would like to ask all ministers to make sure that the Government works as one to prepare for and implement those measures.
 
Furthermore, Minister Nemoto has shared with us the report of the Central Minimum Wages Council, concerning the increase in minimum wage, which we have also been discussing at the Council on Economic and Fiscal Policy.
 
With the aim of reaching a national weighted average of 1,000 yen earlier, I would like the relevant ministers to work together and, through increasing productivity, firmly advance efforts to create an environment such that micro, small and medium-sized enterprises can increase wages.”