TOKYO, June 22 (Xinhua) -- The Democratic Party of Japan-led government announced on Tuesday a long term framework of fiscal policy aimed at reining in the nation's burgeoning public debt.
The government of Prime Minister Naoto Kan aims to bring the primary balance for both the central and local governments back into surplus in fiscal 2020 and reduce state debts incrementally from fiscal year 2021.
In addition, in the medium-term, annual policy spending will be capped at below 71 trillion yen (781.85 billion U.S. dollars) for the next three fiscal years through 2013 and new government bond issuance will be kept below 44.3 trillion yen (487.83 billion U.S dollars) for fiscal year 2010, the government announced.
The government said it would make "utmost efforts" to reduce the amount in the following years.
The government also maintained it would continue its pledge to cut wasteful spending, but called for the public to share the nation's financial burden by accepting reformatory measures such as an overhaul of the tax system, including consumption tax "at an early date."
The fiscal reform policy also highlighted the fact it would be working closely with the Bank of Japan (BOJ) to combat deflation and will endeavor to address and account for increasing health costs connected to a rapidly aging society.
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