Japan starts to draw up 2020’s budget
A Fiscal System Council sub-committee initiated full-fledged talks on Thursday to draw up the 2020 budget.
For the coming fiscal year, which begins in April, the budget compilation work is the first of its kind since the Reiwa era started with the Imperial succession on May 1st.
Government ministries and agencies ‘ budget requests amounted to a record 105 trillion yen, while economic measures following the consumption tax hike are expected to be discussed separately from 8 per cent on Tuesday.
The emphasis of the sub-committee meetings, which guides the finance minister, is whether it can devise practical proposals for curbing the expense of ballooning social security.
Finance Minister Taro Aso said his ministry aims to draw up a high-quality budget tailored to the new era, including through total procurement overhaul, to strike a balance between economic emphasising and fiscal rehabilitation at a sub-committee meeting on Thursday.
The government’s target in fiscal 2025 is to guide the central and local government’s primary expenditure balance into the red. Nevertheless, the Cabinet Office forecasts that while the country continues to maintain high economic growth centred on the tax hike, the primary expenditure balance will stay in the red in fiscal 2025.
The Ministry of Finance provided reports explaining this figure at Thursday’s session, emphasizing the complexity of fiscal reform.
In September, to create a social security system that protects all families, the government launched a forum of consultations on retirement and medical system reform.
Whether the board will work out measures to stem the increase in social security expenses from the increasingly greying population remains unclear.
The Council of the Fiscal System will address plans for specific topics such as social security, food, forestry, and fisheries.
It intends to draw up a set of plans as early as late November, hoping they will be mirrored in the draft budget of the government to be written late in the year.