Tuesday, December 16, 2008

Council on Economic and Fiscal Policy

Prime Minister Taro Aso held a meeting of the Council on Economic and Fiscal Policy at the Prime Minister's Office.

At the meeting, deliberations took place on the "mid-term programme" to build a sustainable social security system and to secure a stable supply of financial resources for that purpose, and the Council's proposal was finalized.

In his address, Prime Minister Aso said, "In response to the rapidly changing economic situation, the government has taken, in quick succession, economic countermeasures, including financial measures and those to save employment. We will also create a reserve budget for emergency economic responses. I believe that bold and quick responses must continue to be made, giving top priority to economic recovery. But the actions of a responsible ruling coalition involve more than just spending money. In tandem with concrete economic countermeasures, we must take further steps to demonstrate fiscal responsibility over the mid-term and to enhance the reliability of the social security system. I am sure you all agree. Earlier, I announced at a press conference that I should like to ask for a rise in the consumption tax rate in three years' time, after taking into account the economic situation at that point. I consider the Council's proposed "mid-term programme" to be appropriate as it lays out a concrete roadmap and measures including the year in which a fundamental reform of the tax system, including the consumption tax, will commence, and the year in which necessary legislative measures will be taken. I will ask the ruling coalition to conduct deliberations based on this proposal and have the proposed "mid-term programme" decided upon by the government by the time the budget is formulated."

Related Link

• Press Conference by Taro ASO, Prime Minister on "Emergency measures to defend people's daily lives" (December 12, 2008)
• Council on Economic and Fiscal Policy (Cabinet Office)