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Business
Kan Says Fiscal Consolidation Still Needed
Friday, July 30, 2010
PM Seal
Tokyo -- Prime Minister Naoto Kan went before the nation in a press conference this evening and announced that, despite his party's defeat over the issue of raising consumption taxes, Japan's debt situation still needs to be seriously addressed.
"Regardless of who is prime minister or which party will run the government, fiscal consolidation will remain a major issue for the nation," he declared.
Japan's debt-to-GDP ratio of about 170% (according to the Japanese government's calculation system) is by far the highest in the developed world.
In June, the National Policy Unit - which serves as a sort of think tank for the prime minister - outlined a plan to eliminate the annual budget deficit by 2020.
Based on his statements at the Kantei this evening, there is much reason to believe that Prime Minister Kan remains committed to this goal.
On the other hand, the premier has become more cautious about raising taxes, saying that his platform for re-election as DPJ leader in September would not be based on a tax hike.
The prime minister is now taking the position that government waste must be cut before discussions of tax raises can begin.
Nevertheless, more broadly speaking, Kan signaled this evening that his priorities haven't changed.
PanOrient News
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