Japan Aims to Spur Growth with Crisis Management Investment

Tokyo, Feb. 20 (Jiji Press)–Japan will promote economic growth through crisis management investment, economic and fiscal policy minister Minoru Kiuchi said in a parliamentary speech Friday. Kiuchi said that the biggest mission of Prime Minister Sanae Takaichi’s administration is to realize a strong economy. Stressing that expediting crisis management investment, which is effective in enhancing economic security, is a pillar of a growth strategy, he said that the government will “ensure safety and security, and raise the nation’s potential growth rate by increasing jobs and income.” Kiuchi noted that Japan is at a crossroads as to whether it can create a growth-oriented economy. He also underlined the importance of reinforcing the country’s supply structure through strategic fiscal spending at a time when the Japanese economy’s potential growth rate has long remained at or below 1 pct. Concerning the government’s next basic economic and fiscal management and reform guidelines, Kiuchi showed plans to promote discussions on state budgets under a policy of earmarking all necessary funds under initial budgets, not on the premise of drawing up supplementary budgets. He delivered the economic policy speech at the ongoing special session of the Diet, the country’s parliament, convened Wednesday following the Feb. 8 general election for the House of Representatives, the all-important lower Diet chamber, in which the ruling Liberal Democratic Party won more than two-thirds of the chamber’s seats. On proposals to introduce a refundable tax credit system and reduce consumption tax, Kiuchi vowed to reach a conclusion through full-fledged discussions at an envisaged suprapartisan council, including by giving consideration to minority opinions, without abusing the ruling party majority. END [Copyright The Jiji Press, Ltd.]