The draft of this year's basic policy for economic and fiscal management, "Basic Policy," has been compiled.
While reversing the trend of the declining birthrate by improving the environment conducive to expanding wage increases and fundamentally strengthening policies for children and child-rearing, with regard to fiscal management, the government will return the expenditure structure to normal times as the economy normalizes after the pandemic emerges.
I would like to tell you in detail the main contents of the basic policy.
Macroeconomic Management
Realization of wage increases and sustainable growth
First, the Basic Policy on Economic Management is stated.
He expressed his recognition that Russia's invasion of Ukraine has shaken the very foundation of the international order, and that Japan is facing structural challenges at home and abroad that can be called "turning points of the times," such as
overcoming the deflationary economy and responding to the rapidly declining birthrate and
the uncertainty about the future behind it.
Against this backdrop, the challenge of breaking the "vicious cycle" of the past has steadily begun to move,
such as wage increases
at the highest level in 30 years and firms'
growing willingness to invest.
In order to further ensure this trend, we aim to achieve structural wage increases and lead to a virtuous cycle of wages and prices, and to expand private investment through targeted public spending in areas such as investment in people and the environment,
leading to sustainable growth.
【Measures to address the declining birthrate】
Without asking the public to bear a substantial additional burden
Recognizing that the child and child-rearing policy is the most effective investment in the future, the government will drastically strengthen measures in line with the "Children's Future Strategy Policy," which includes measures to expand child allowances to be decided soon, and reverse the trend of declining birthrates.
We are also coordinating to clearly state that we will proceed without requiring the public to bear any substantial additional burden.
[New Capitalism]
"Rekilling", "retirement pay" and "minimum wage" are
In order to realize the "new capitalism" advocated by the Kishida administration, "labor market reform" has been set as a priority area.
Specifically,
we will make specific designs so that people who leave their jobs for personal reasons can receive unemployment benefits in the same way as if they quit for company reasons if they are engaged in risking, and review the current tax system,
which significantly reduces the tax on retirement benefits after more than 20 years of service. It says it will encourage labor mobility.
In addition, in order to expand the trend of wage increases, the Bank will work to create an environment in which small and medium-sized enterprises can raise wages.
In addition to considering further measures, including taxation, to encourage small and medium-sized enterprises that are in the red to raise wages,
we will discuss at a council meeting between labor, management, and the government, including achieving a national average minimum wage of 1000,1000 yen per hour during this year.
The government will also discuss the policy of raising the minimum wage after achieving an hourly wage of <>,<> yen.
【Defence and Security】
Strengthening the Civil Protection System
In the field of defense, in order to realize the rapid evacuation of residents in the southwestern region and other areas in the event of an emergency, the government and local governments will strengthen their systems for protecting citizens, including securing various types of evacuation facilities.
Economic Security
Strengthen support for the development of cutting-edge important technologies
As the security environment becomes increasingly severe, it also includes the promotion of economic security policies to "secure national interests in the economic sphere."
Supply chain of important goods = Toward strengthening the supply network, ▽Further consider how to provide support, including capital reinforcement, to private companies responsible for manufacturing important commodities,
▽Strengthen support for the development of advanced important technologies and steadily promote research and development in the public and private sectors.
It will also consider measures to ensure the handling of sensitive data and the security of information and communication technology.
【Education Hay fever logistics】
Fundamental review of teacher treatment
In addition, in the field of education, in order to fundamentally review the treatment of teachers, we will consider the design of a specific system, such as organizing various allowances and creating a balanced salary system according to the burden of work.
After 30 years, pollen halved
In addition, measures against hay fever are also one of the social issues, and the government will work together to take measures against the source and scattering with the aim of halving the amount of pollen generated in 1 years.
Efficiency through digitalization
Furthermore, in preparation for the "2024 problem," in which there are concerns about a serious labor shortage due to the tightening of labor regulations for truck drivers in the logistics industry, the company will promote the efficiency of logistics through digitalization and implement drastic measures such as the introduction of regulations and other measures that will reduce the burden on shippers and consumers.
【Financial Targets】
Corona disaster expenditure structure "in peacetime"
With regard to the government's sound fiscal management, as the economy normalizes, the government will return the structure of expenditures inflated by the coronavirus pandemic to "normal times" and will work to prevent fiscal expenditures in emergencies from becoming longer or permanent than necessary.
In addition, he stated that he would "work on the existing fiscal consolidation target without lowering the flag of fiscal consolidation" and maintained the previous target of achieving a primary fiscal surplus in fiscal 2025.
In addition, the Bank stated that it would "conduct inspections and verifications in fiscal 2024" on the progress of the comprehensive economic and fiscal reform, and indicated that it would proceed with the formulation of a medium-term fiscal framework within the next fiscal year.
Budget compilation for the next fiscal year
Expenditure reform is also necessary for material issues
Finally, with regard to the compilation of the budget for the next fiscal year, he indicated his intention to work on expenditure reform with the aim of steadily promoting the comprehensive economic and fiscal reform.
On the other hand, it also includes the phrase "we must not limit ourselves to important policy options" and states that necessary budgetary measures will be taken for important policy issues such as measures to address the declining birthrate and drastic strengthening of defense capabilities.
The government, in coordination with the ruling parties, will make a Cabinet decision on the "Basic Policy" in the middle of this month.
Prime Minister Kishida: "Positive Movements, Vigorous Expansion"
Prime Minister Kishida stated, "Japan has positioned the 'new capitalism' at the center of economic management and has been making all-out efforts to realize a virtuous cycle of growth and distribution. Now is the time to further accelerate our efforts to strongly expand these movements."