Top �� What's up around the Prime Minister �� January, 2003

The first meeting of 2003 of the Council on Economic and Fiscal Policy was held at the Prime Minister's Official Residence. At the meeting, a proposal entitled "Reform and Perspectives - FY2002 Revision" was submitted as a revision to the "Structural Reform and Medium-Term Economic and Fiscal Perspectives" decided by Cabinet in January last year. Based on the economic and fiscal situation, the proposal extends the "intensive adjustment period" of low economic growth brought about by the disposal of non-performing loans and other measures until FY2004, and the target period for overcoming deflation is revised to after 2005. In addition, the proposal emphasizes the need for the Government and the Bank of Japan to work together to overcome deflation, and clearly states the goal of "realizing a positive rate of inflation as early as possible." The proposal is to be submitted for approval by the Cabinet.