Tokyo, Oct. 9 (Jiji Press)–The Japanese government held a meeting Friday to thoroughly review special tax incentives, subsidies and funds in an effort to secure financial resources for a planned consumption tax cut and defense buildup. As preparations begin in earnest for the compilation of the fiscal 2027 budget, Finance Minister Satsuki Katayama, who oversees the review process, presented key points for consideration at the meeting. Speaking at a press conference later in the day, Katayama emphasized the importance of balancing economic growth with fiscal sustainability. “We’ll intensify our efforts and carry out the review thoroughly,” she said. At the meeting, related ministers and state ministers confirmed a policy of reducing excessive reliance on subsidies and funds while continuously assessing effectiveness. Regarding subsidies, Katayama sought to evaluate cost-effectiveness, ensure the appropriateness of objectives and implementation methods, establish clear exit strategies and eliminate overlapping programs. She also called for the return of idle funds to the national treasury and effective reallocation to other priority areas. A committee consisting of officials from relevant government agencies will be established to accelerate the review process through information-sharing. About 5 trillion yen in annual funding will be required to finance a planned benefit program and a consumption tax cut on food items, set to begin in fiscal 2027, which starts next April. Even so, self-assessments by government agencies identified only three candidates for abolition among 121 tax breaks. Reviews of subsidies and government funds have resulted in savings of only about 17 billion yen so far. END [Copyright The Jiji Press, Ltd.]
