Council of the Ministry of Finance “Necessary capacity to deal with the increasing uncertainty of the future”

A council of the Ministry of Finance, which discusses the state's budget, has put together a proposal, saying that the need to have financial capacity is increasing more than ever as the uncertainty of the future such as the situation in Ukraine increases. He reiterated the importance of adhering to the fiscal consolidation target.

The "Financial System Council" announced its recommendations on the 25th, before the government will compile the basic policy of economic and financial management, "Honebuto no Hoshi", next month.

The recommendation is that, as uncertainty increases due to the military invasion of Ukraine, there is financial capacity to prepare for various risks such as tense security, catastrophes, and rising interest rates, so that funds can be raised smoothly. He pointed out that the need to have is higher than ever.

On that basis, regarding the government's fiscal consolidation target, "In the future, Japan's trade deficit may take root and the outlook for the current balance may change significantly. He reiterated that it is becoming more important to adhere to the goal of turning the "primary balance" of the national and local governments into the black by 2025.

In addition, the proposal called for efficiency in responding to the new corona, and called for securing the necessary financial resources so as not to postpone the burden of global warming countermeasures.

In addition, we are stabbing defense spending so as not to proceed with discussions on a "scale-based" basis.

Deputy Chairman Masuda "Always conscious of fiscal consolidation"

Regarding the proposal, Hiroya Masuda, Deputy Chairman of the Financial System Council, said, "Economic measures and supplementary budgets are not based on the amount of money, based on the fact that large-scale supplementary budgets have been prepared one after another since the spread of the new corona infection. After carefully examining the contents of expenditures, the budget will be invested and accumulated in effective ones. Even if economic measures are taken, Japan has by far the largest debt internationally, and fiscal consolidation will be promoted. If you don't always be aware of it, you won't have the capacity to deal with finances. "