The Cabinet Office has compiled a long-term fiscal estimate for the national and local governments up to fiscal 2060. As medical and nursing care costs continue to rise, it is necessary to focus on thoroughly implementing spending reforms and raising the growth rate in order to stabilize the economy.
According to estimates presented by the Cabinet Office at the government's Economic and Fiscal Policy Council held on the 2nd, the aging rate is expected to rise to 38% in fiscal 2060, and medical and nursing care costs are expected to continue increasing during this period. .
On the other hand, if the economic growth rate in real terms excluding price fluctuations remains at around 0.2% per year, even if expenditure reforms are implemented for medical and nursing care, the basic The fiscal deficit is expected to widen.
On the other hand, in the case where the growth rate continues at around 1.2%, a surplus in the ``primary balance'' is expected if expenditure reforms are carried out because tax revenues will increase.
Furthermore, if the growth rate rises to around 1.7%, the ratio of the amount outstanding of government bonds issued to the size of the economy will steadily decline.
The Cabinet Office has stated that in order to stabilize the public finances, it is important to thoroughly implement spending reforms, increase the labor force participation of women and the elderly, and improve corporate productivity to raise the growth rate to above 1%. It is said that it is necessary to concentrate and work on it to a certain extent.
Prime Minister Kishida: ``It is important to steadily advance fiscal consolidation''
At the Economic and Fiscal Policy Council, Prime Minister Kishida said, ``In order to build a sustainable economy, finances, and social security in the medium to long term even in the face of a declining birthrate, aging population, and population decline, we will realize a strong economy through real economic growth exceeding 1%.'' At the same time, it is important to work on reforming medical and nursing care benefit costs and steadily advance fiscal consolidation."
He added, ``In order to put a sustainable economic society on track by 2030, when the population decline will be in full swing, we will advance intensive efforts, including necessary institutional reforms, over the next three years.'' ``I would like the government to move forward with consideration of a medium-term economic and fiscal framework toward achieving this goal,'' and instructed relevant ministers to consider specific measures.