Press Conference by the Chief Cabinet Secretary (Excerpt)

Q&As

REPORTER: The supplementary budget for FY2015 has been passed in the plenary session of the House of Councillors. Where and how does the Government expect the implementation of the supplementary budget will have an effect?

CHIEF CABINET SECRETARY SUGA: The Abe Cabinet has made economic revitalization its top priority. Our concerted efforts under this policy during the past three years have helped to create a situation where there is no longer deflation. In addition to this outcome, last year the Government announced a new target towards the realization of the dynamic engagement of all citizens, tackling challenges head-on, never avoiding the issues confronting us, such as the declining birthrate and aging society, and seeking to create a strong economy. The supplementary budget for FY2015 is important in that it marks a new first step for the Abe Cabinet under this new policy. At the very start of the year, on January 4, the regular session of the Diet was convened and the draft supplementary budget was submitted for deliberation, following which it was passed by the Diet today. The supplementary budget is exceptionally important for Japan to respond to downside risks in the economy and work to resolve national challenges.

REPORTER: There are also concerns about the path for the Chinese economy, so do you think that the supplementary budget will have any effect in responding to such concerns?

CHIEF CABINET SECRETARY SUGA: In any event, the supplementary budget is exceptionally important for the growth of Japan and the creation of a strong economy.

REPORTER: I have a question concerning share prices. The Nikkei Stock Average fell significantly today to its lowest level for 15 months, since the day after the Bank of Japan last decided to implement additional quantitative easing measures. Can I ask for your views on this latest drop in share prices?

CHIEF CABINET SECRETARY SUGA: I am aware that share prices have fallen today. With regard to the global economy in general, a gradual overall recovery is being seen, which is expected to continue into the future, against the backdrop of such factors as the continued recovery of the United States economy. In addition, I would say that the fundamentals of the Japanese economy remain strong. With regard to the fall in oil prices, about which much is being said recently, I believe that basically this could have a positive effect on the real economy of Japan, through decreases in utility charges and others. On the other hand, the deceleration of emerging economies, which is behind the current fall in oil prices, is something that will need to be taken into due consideration.

REPORTER: I have a related question. You have just mentioned various risks in the global economy, so if such risks were to become even greater from now, what measures do you think the Government should take to deal with them?

CHIEF CABINET SECRETARY SUGA: Market movements should not prompt haphazard responses. At the same time, the Government is working in cooperation with the international community, including the G7 nations, to monitor the domestic and international situation, and it will be important for the Government to focus on swiftly implementing the supplementary budget that has been passed today. Furthermore, Governor Kuroda of the Bank of Japan has often stated the opinion if there were to be a change in commodity prices, then the Bank of Japan would not hesitate to respond by implementing additional quantitative easing measures, if deemed necessary for reaching the two percent target. At any rate, the Bank of Japan and the Government will continue to work closely together, engaging in thorough monitoring of the overall global economic situation.

(Abridged)