Press Conference by the Chief Cabinet Secretary (Excerpt)

Opening Statement by Chief Cabinet Secretary Suga

• An overview of the extraordinary Cabinet meeting
• A meeting of the Security Council
• A personnel decision regarding the Special Advisor to the Prime Minister

CHIEF CABINET SECRETARY SUGA: I would like to give an overview of the extraordinary Cabinet meeting. The meeting approved one general measure and personnel decisions. With regard to statements by ministers, the Minister of Finance made a statement concerning the FY2012 supplementary budget.

Prior to the Cabinet meeting, the Security Council convened a meeting. At the meeting, deliberations first took place regarding the "key items of the build-up of defense capability in FY2012," which are included in the draft first (supplementary) budget. The items were decided as shown in the material that has been distributed to you. With regard to the specific content of the individual equipment decided at the meeting, I ask that you please direct your questions to the Ministry of Defense.

Following this, deliberations took place on the "overall security of Japan." While I will refrain from disclosing the specific content of the deliberations, I would like to mention that taking this opportunity which came in the immediate wake of the launch of the second Abe Cabinet, the members of the Security Council shared their views regarding the current state of the overall security of Japan.

I would like to announce a personnel decision regarding the Special Advisor to the Prime Minister. Effective January 21, following the Prime Minister's return to Japan, Mr. Hiroto Izumi, the previous Special Advisor to the Cabinet, will be appointed to the position of the Special Advisor to the Prime Minister in charge of the nation's infrastructure resilience and social capital development, including reconstruction.

Q&As

• The supplementary budget

(Abridged)

REPORTER: I would like to ask a question about the supplementary budget. I understand that the supplementary budget includes major economic measures and is accompanied by the issuance of government bonds. Some concerns are being raised that fiscal discipline has been eased. What are the thoughts of the Government regarding these opinions?

CHIEF CABINET SECRETARY SUGA: First of all, our priority is to break away from the appreciating yen and deflation. In this context, I believe we are taking thorough countermeasures with fiscal discipline always in our minds.

REPORTER: Regarding the modality of fiscal discipline going forward, it is rumored that the Council on Economic and Fiscal Policy may come out with an index as early as this coming June. How does the Government intend to demonstrate the modality of fiscal discipline?

CHIEF CABINET SECRETARY SUGA: Fiscal discipline is indeed a critically important matter. Therefore, we are ensuring fiscal discipline in coordination with the latest supplementary budget, which is designed for breaking away from deflation, and other such measures. Fiscal discipline is always in our minds when we implement measures, and we want to make sure that there are no concerns regarding this matter.

(Abridged)