Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

• The bill on special provisions concerning issuance of government bonds and consideration on the supplementary budget

REPORTER: Today in talks among the Democratic Party of Japan (DPJ), Liberal Democratic Party (LDP) and New Komeito Party, agreement has been reached concerning the passage of the bill on special provisions concerning issuance of government bonds. What is the Government's reaction to this agreement?

CHIEF CABINET SECRETARY FUJIMURA: The Government welcomes the fact that agreement has been reached among the three parties in the form of a confirmation note. In addition, the Government also strongly expects that the bill will be passed promptly.

REPORTER: On a related note, not only did the talks today reach agreement on the passage through both houses of the Diet of the bill on special provisions concerning issuance of government bonds for this fiscal year, but it was also confirmed that until fiscal 2015 the enactment of this bill on special provisions will be implemented as a set together with the budget proposal. Until now the approval for the enactment of a bill on special provisions has been limited to one year and some people have pointed out that the agreement reached today, which would give automatic approval for a bill on special provisions, could have an impact on fiscal discipline and make deliberations on budget-related bills become a mere facade. What is your recognition with regard to this point?

CHIEF CABINET SECRETARY FUJIMURA: Given the current situation of a divided Diet, it was the Prime Minister who proposed the creation of rules that would enable the budget-related bills and the bill on special provisions concerning issuance of government bonds to be dealt with together, from the perspective of ensuring stable fiscal management. However, as you have stated, I believe that it is an important point to ensure that such a measure does not result in a slackening of fiscal discipline. From that perspective, although the revised draft bill will approve the issuance of special government bonds until fiscal 2015, I hear that the revision clearly states that the bond issuance volume should be constrained, for the purpose of establishing a sustainable fiscal structure for the mid to long term that would guard against any slackening of fiscal discipline. In addition, I hear that there has also been discussion on this subject within the DPJ itself. Therefore, I believe that the outcomes of such discussions will be reflected in the deliberations of the budget committee on ensuring fiscal discipline is not affected.

REPORTER: On a related note, in the agreement reached among the three parties, in exchange for the agreement on the passage of the bill on special provisions, it has also been agreed to revise policy-related expenditure in the supplementary budget for this fiscal year. Are we to understand from this agreement that the compilation of the supplementary budget, whenever it takes place, will be basically implemented jointly by the DPJ, LDP and New Komeito Party?

CHIEF CABINET SECRETARY FUJIMURA: Naturally, the supplementary budget will be compiled in consultation with the other parties. However, how and when such consultations will take place has yet to be decided and is not something I can say with any degree of certainty.

REPORTER: You have just stated that the supplementary budget will be compiled in consultation with the other parties, however, today the leaders of the LDP and New Komeito Party have expressed strong opposition to the compilation of a supplementary budget during the current Diet session, particularly in view of the fact that it may come before a general election. Given these opinions expressed by the LDP and New Komeito Party, do you think that consultations on the compilation and timing of the supplementary budget will be decided?

CHIEF CABINET SECRETARY FUJIMURA: As I have always stated with regard to the supplementary budget, any decision must be made at the appropriate time, taking into account the fiscal and economic situation, and it is a fact that such considerations must be made within the current fiscal year.

(Abridged)