Japan to focus on combating economic crisis, social security needs

TOKYO, June 16 Kyodo -
The government decided Tuesday at a key economic policy panel to put top
priority on steering Japan out of the global economic crisis and strengthening
its social security program when it compiles the fiscal 2010 budget.
Finance Minister Kaoru Yosano said the government may set aside special
reserves in the budget to address the two key areas Prime Minister Taro Aso has
laid out.
''We're ready to boldly tackle politically sensitive challenges,'' Yosano
quoted Aso as saying at the meeting of the Council on Economic and Fiscal
Policy, headed by the prime minister. ''We're ready to distribute and
concentrate human resources and the budget -- that cross across ministries --
to our top priority issues.''
Specifically, the government aims to expand job opportunities for the younger
generation, enhance ties with Asian neighbors and boost private investments to
stem carbon dioxide emissions.
The provisions were part of the latest draft of the government's annual fiscal
policy guidelines due out later this month, which was approved by the panel.
The draft also includes Japan's goal to reduce greenhouse gas emissions by 15
percent from 2005 levels by 2020, which Aso unveiled last week.
In addition to measures to fend off the economic recession, the government also
said it plans to recover confidence in its social security program, which was
badly eroded by scandals involving its pension system.
According to the draft, the government intends to maintain its basic policy to
reduce natural increase in social security costs by 220 billion yen for each
fiscal year, which was advocated by the administration of Prime Minister
Junichiro Koizumi who was in office from 2001 to 2006.
Yosano said the government will increase efficiency to cut costs while beefing
up some functions to meet essential social security needs.
On fiscal policy, the draft also says Japan will aim to achieve a surplus in
the primary balance -- revenue matching spending, excluding debt payments -- at
both national and local levels by the end of fiscal 2019.
The government has recently toned down its target as the country grapples with
swelling public spending to cover social security costs and finance stimulus
measures to combat the economic recession.
==Kyodo