The Fiscal System Council, an advisory body to the Minister of Finance, argued that it is essential to secure stable financial resources for the increase in defense spending, which has become a focal point, and has directly discussed the nature of the burden on the public, gaining the understanding and consent of the public. We have compiled a list of recommendations for you to obtain.
At the meeting on the 29th, the Fiscal System Council compiled a "recommendation", which is a proposal for formulating the budget for the next fiscal year, and chairman Sadayuki Sakakibara handed it to Minister of Finance Suzuki.
In this plan, the government is considering a "mid-term defense" = mid-term defense buildup plan, and the increase in defense spending over the next five years, which is the focus of the plan, is "to exceed 30 trillion yen and increase significantly." If that happens, it can be said that this itself is a turning point in history.”
On top of that, he pointed out that it is important to gain the public's understanding and consent by directly discussing the state of the public's burden, saying that it is necessary to secure stable financial resources along with expenditure reforms without delaying the burden of defense spending. doing.
In addition, he proposed that the current situation of taking large-scale financial measures as a countermeasure against the new corona should be regarded as an "exception" and that various measures should be gradually reduced and completely ended.
Furthermore, in this proposal, I will introduce a case where the former Truss administration in the United Kingdom lost the confidence of the market by advocating large-scale tax cuts and fiscal stimulus without the support of financial resources, and resigned. As such, it is essential to conduct responsible financial management so as not to invite distrust in the market."
Based on the submitted proposals, the Ministry of Finance plans to start full-scale preparation of the next fiscal year's budget proposal.
Chairman Sakakibara “Stable financial resources through reforms in both expenditure and revenue”
At a press conference, Sakakibara, chairman of the Fiscal System Council, said of the financial resources for the increase in defense spending, "There are two main pillars: first, we will implement expenditure reforms, and then we will take steps to secure stable revenue sources. is very large, and we will steadily reduce it.Furthermore, we have proposed in our proposal that we firmly maintain the direction of aiming for a surplus in the primary balance, which is the primary balance, and we should aim to achieve that." He expressed the recognition that stable financial resources should be secured through reforms on both expenditure and revenue, rather than relying on easy government bond issuance.
Hiroya Masuda, deputy chairman of the council's subcommittee, said, ``With the amount outstanding of government bonds issued unparalleled anywhere in the world, deficit-covering government bonds simply lose credibility, which is not desirable. It is said that stable financial resources should be used for projects that involve large expenditures, and I think we will have discussions about specific financial resources in December, but I hope that proper discussions will be held." rice field.