Aso vows to restore fiscal health

January 22, 2018

Tokyo- Japanese Finance Minister Taro Aso said Monday the government will continue to aim to restore its fiscal health despite changes in the planned use of additional revenue from a consumption tax hike set for October 2019.

"Never giving up our goal to achieve fiscal soundness, we'll maintain our policy to generate a primary budget surplus," Aso said in a policy speech at plenary sessions of the two chambers of the Diet, Japan's parliament.

A primary budget surplus means that a government can finance its spending on policy measures, except for debt-serving costs, without issuing new debt.

Revised ways to use of the revenue from the consumption tax hike to 10 pct from 8 pct are expected to delay the government's efforts to restore its fiscal health. Aso said that the government plans to map out a specific and highly viable plan for fiscal reconstruction as part of its "honebuto" basic economic and fiscal policy guidelines to be adopted in June at the earliest.

Explaining that the amount of new Japanese government bonds to be issued under the fiscal 2018 budget will fall for the eighth straight year, Aso said, "It's a budget that will pursue economic revival and fiscal soundness at the same time."

To cope with the falling birthrate and the aging population, the government, under the budget for the fiscal year starting in April, will prioritize the allocation of funds to address shortages of nursery schools and promote capital investment by core regional companies, Aso said.

Aso delivered the speech after submitting to the Diet the fiscal 2018 budget and the fiscal 2017 supplementary budget. Jiji Press