The Liberal Democratic Party presidential election will enter the second half of the game, and a policy debate will be held from the 23rd to the 4th, where four candidates will answer questions from the public online.


On the 23rd of the first day, opinions were exchanged on measures for the new corona and economic and fiscal policies.

In this LDP presidential election, street speeches will not be held in various places to prevent infection. Instead, four candidates will answer questions from the public online for four days from the 23rd. Will be held for the first time.



The first day, the 23rd, started at 6 pm, and 100 people selected by lottery participated and asked questions about new corona measures, economic and fiscal policies, social security, and so on.



Among them, four candidates commented on their efforts to resolve the infection with the new coronavirus.

Kono, the Minister of State for Regulatory Reform, said, "Vaccines will reduce the fatality rate, and in November, people who want it will be able to hit it. We are also developing equipment that will allow the hospital to respond if something goes wrong. I want to do my best. "

Former political research chairman Kishida said, "We have to make steady progress in both vaccination and therapeutic drug development. We are also developing therapeutic drugs by the end of the year, so we would like to create a path to regain socio-economic activities. It will take some time, so I would like to prepare economic measures that will allow me to endure and cooperate until then. "

Former Minister of Internal Affairs and Communications Takaichi said, "There are various risks such as the emergence of new mutant strains, but if as many people as possible take measures to prevent infection and vaccines and therapeutic agents become widespread, the exit will surely be visible. In the meantime, I would like to strengthen measures so that the company will not collapse and that working people and freelancers will not be in trouble. "

Acting Secretary-General Noda said, "First of all, do not create medical refugees. By approaching the vaccination rate to 100%, we will reach a certain turning point like in other countries, and if we can take medicines, even if we are at home. I don't feel anxious. I want to move forward with economic activities and remove the mental burden. "

Corona Support and Financial Challenges

As the outbreak of the new coronavirus continues for a long time, the government is providing a variety of support to businesses and individuals who are seriously affected.



In addition to providing "cooperation money" to restaurants in response to requests for shortening business hours, it also compensates for the decrease in sales to business partners of restaurants and businesses affected by refraining from going out. We provide "monthly support money".

In addition, if a parent takes paid leave, such as when the school where the child attends is closed, a subsidy will be paid to the company where the child works.



For individuals, there is also an "emergency small-lot fund" that allows people with reduced income to borrow up to 200,000 yen as living expenses, and a system that provides 50,000 yen per child to child-rearing households that are exempt from residence tax. going.



On the other hand, the issue is how to quickly distribute support to companies and individuals who need funds.



Last year, the government prepared a total budget of over 175 trillion yen for measures such as corona measures, but over 30 trillion yen was not used and was carried over to this year.

Of this amount, more than 3 trillion yen is the cost of cooperation money for restaurants in response to requests for shortening business hours, and prompt execution of the budget is required.



In addition, the national employment adjustment subsidy, which subsidizes leave allowances when companies affected by the new coronavirus maintain employment of employees, has been paid more than 4 trillion yen since February last year. We are also facing a shortage of financial resources.



There is also an urgent need to focus on effective support while assessing economic and employment recovery and financial conditions.

Deteriorating Japanese finances

Japan's finances are getting worse.



Last year = In the second year of Reiwa, the government prepared a supplementary budget three times, and the total amount of the general account, including the initial budget, expanded to an unusual scale of over 175 trillion yen.



Of this amount, more than 60 trillion yen was covered by tax revenue, but the remaining financial resources were supplemented with government bonds, etc., so the amount of new government bonds issued for the first year exceeded 100 trillion yen for the first time.



As a result, the total debt balance of the national and local governments is expected to reach more than 1166 trillion yen at the end of this fiscal year, which is more than double the GDP = gross domestic product.



Furthermore, as the so-called baby boomer generation turns 75 years old or older, it is expected that social security costs such as medical care and long-term care will increase further, and the national finances are likely to expand structurally.



However, as the infection of the new coronavirus has not been resolved, continuous support for companies and individuals who have been hit is indispensable.



Furthermore, a certain amount of financial support is required to speedily proceed with digitization and decarbonization, which the government has set as national growth strategies.



The government's economic and financial management is under pressure to steer very difficultly by responding to the new corona and revitalizing the economy at the same time as promoting fiscal consolidation.

"Primary balance" and fiscal consolidation

The government uses the "primary balance" = primary balance as an indicator of fiscal consolidation.



The primary balance shows how much tax revenue and non-tax revenue can cover policy expenses such as social security and defense spending without relying on government bonds.


The government has set a goal of turning the primary balance of the national and local governments into the black in 2025, but last year, the government made three supplementary budgets, resulting in a deficit of 56.4 trillion yen. Achieving the goal is not easy as the response to the new coronavirus continues.



According to the latest estimation by the Cabinet Office, even if it is assumed that economic growth will continue to be high by about 2% per year in real terms excluding price fluctuations, the achievement of profitability will be two years behind the government's target in 2027. It is supposed to be.



Therefore, in order to achieve the target, it is necessary to quickly converge the new corona to achieve high economic growth and to reduce expenditures.



While this year's "Honebuto no Hoshi" stipulates that it will adhere to its current goals, it also includes examining the economic and financial impact of the new Corona and reaffirming its target year during the current fiscal year. ..



However, it has been pointed out that if the path to fiscal consolidation becomes unclear, confidence in public finances may be lost, and it is also being asked how to plan fiscal consolidation while responding to the new corona. increase.

Bank of Japan continues large-scale monetary easing

The Bank of Japan aims to achieve the price stability target of 2% and will continue large-scale monetary easing until the time necessary to maintain it stably.



The Bank of Japan's Governor Kuroda, who took office in 2013 following the inauguration of the second Abe Cabinet, has embarked on a large-scale monetary easing with the goal of a price increase rate of 2% in order to escape from deflation.



As a result of increasing the purchase of government bonds to supply a large amount of funds to the market and also purchasing ETFs = exchange-traded funds that collectively make multiple stocks, the yen depreciated and stock prices rose at a stretch in the financial market.



However, the 2% price target, which was initially set to be achieved in about two years, could not be achieved, and in January 2016, the Bank of Japan applied a negative interest rate to some of the current deposits held by financial institutions. Was introduced, and further monetary easing was undertaken.



Then, eight months later, after making the short-term interest rate negative, the monetary policy was changed to keep the long-term interest rate at around 0%.

Furthermore, in order to support the economy affected by the new coronavirus in March last year, monetary easing with a price target of 2% is continuing, such as further strengthening the purchase of government bonds and ETFs.



Various "side effects" have been pointed out in the large-scale monetary easing over the past eight years.

Due to the negative interest rate policy, the so-called “margin” of loans to companies is shrinking, and the profits of financial institutions are being squeezed.


In addition, the balance of government bonds held by the Bank of Japan was 540 trillion yen as of the end of June, accounting for 44% of the total.



There are criticisms that the BOJ will lose its fiscal discipline by purchasing government bonds on a large scale.

Furthermore, it has been pointed out that the amount of ETFs held is about 51 trillion yen as of the end of March, which is about 7% of the market capitalization of stocks listed on the First Section of the Tokyo Stock Exchange, distorting market price formation. ..