Prime Minister Naoto Kan held a meeting of the Ministerial Committee on the Formulation of the Budget at the Prime Minister's Office.

Discussion took place on how to proceed with the formulation of the FY2011 budget.

The Prime Minister said in his opening address, "We are now at the stage to make a full-fledged start on the formulation of the FY2011 budget. Considering the current economic situation, the budget must be formulated definitely within this year, and I would like the relevant Cabinet members to join their efforts to coordinate the process with a sense of urgency.

While keeping to the rules set out in the Fiscal Management Strategy, we must formulate a budget that prioritizes measures conducive to nation building with an emphasis on growth and employment. To this end, I intend to coordinate the process with political leadership, which is to be exerted mainly by Mr. Koichiro Gemba, Minister of State for National Policy, Mr. Yoshito Sengoku, Chief Cabinet Secretary, and Mr. Yoshihiko Noda, Minister of Finance, and meanwhile formulate the Basic Principles of the Budget Formulation mainly in consultation with Minister Gemba and the National Policy Unit.

In order for this to happen, basic directions must be decided on major items individually at the earliest possible date. First of all, with regard to the child allowance, I would like to start the process with a meeting of five ministers, led by Minister Gemba together with the ministers for internal affairs and telecommunications; finance; health, labour and welfare; and social affairs and gender equality as members."