The government has compiled a draft of this year's "Basic Policy." In order to enable small and medium-sized enterprises with deficits to promote wage increases, the government will consider countermeasures, including the tax system, and will fundamentally strengthen policies for children and child-rearing to reverse the trend of declining birthrates.
The draft emphasizes that wage increases are at a 30-year high, and calls for sustaining this move to revive the thick middle class.
As specific measures, in addition to enhancing "investment in people," including support for rekilling = relearning, we will consider countermeasures, including the tax system, to enable small and medium-sized enterprises with deficits to promote wage increases.
In addition, we intend to achieve economic growth by promoting investment in the semiconductor field and supporting startups.
Furthermore, 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.
On the other hand, with regard to the primary fiscal balance, which is one of the indicators of fiscal soundness, the Bank has stated that it will maintain the target of achieving a surplus in fiscal 1 and conduct necessary verifications within the next fiscal year in order to create a medium-term economic and fiscal framework thereafter.
The government will present this draft to the Council on Economic and Fiscal Policy on June 2025 and, after coordination with the ruling parties, will make a Cabinet decision by the end of this month.