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On December 4, 2020, the Prime Minister held the 18th meeting of the Council on Economic and Fiscal Policy in 2020 at the Prime Minister’s Office.

At the meeting, the participants engaged in discussions on priority issues on the Integrated Economic and Fiscal Reforms  (social infrastructure, local public administration and finance, social security), the draft Basic Principles of FY2021 Budget Formulation, and a report on the action plan  (from the Committee on the Growth Strategy).

Following the discussion, the Prime Minister said:

“Going forward, we will start by deciding on the economic measures early next week that provide support to countermeasures against the novel coronavirus, employment protection and business continuity, aiming at the recovery of our economy. We will formulate the third supplementary budget for this fiscal year  and next fiscal year’s budget  in an integrated manner, based on this decision, undertaking seamless economic and fiscal policy management. In accordance with this, we must sustain the momentum of wage increases  that has continued so far, in order to avoid a return to deflation at all costs.

Today we discussed the Basic Principles of Budget Formulation, towards the budget for next fiscal year. Regarding social infrastructure improvement , we intend to efficiently advance these efforts through making public services available over a wider area and utilizing private-sector service providers, while thoroughly implementing preventative maintenance through streamlining resources to repair the gaining infrastructure. Regarding local finance, we will implement infectious disease countermeasures through the Special Allocation for Regional Revitalization  and other means, and improve the efficiency and transparency of local finance by advancing the unification and standardization of business systems, among other initiatives. Regarding social security, we will steadily undertake reforms, looking ahead to when the baby boomer generation reach the late stage of their life. We will also utilize digital technology, and advance the standardization of medical and nursing care services, reducing all interregional disparities in medical and nursing care expenses. In addition, I ask you to continue efforts to strengthen Japan’s international contribution, by considering the active use of Official Development Assistance (ODA)  in the field of health, based on our experience dealing with the recent infectious disease.”