Tokyo, Oct. 30 (Jiji Press)--Private-sector members of a key Japanese government council have proposed active use of surpluses in the state's foreign exchange special account as financial resources to cover massive fiscal needs.
The proposal was presented at Thursday's meeting of the Council on Economic and Fiscal Policy, headed by Prime Minister Sanae Takaichi.
CEFP members discussed concrete measures to thoroughly reform state budget compilation at a time when the government needs to secure a massive amount of funds for projects such as investments to make the country resilient and prosperous under the Takaichi administration's growth strategy.
Funds are also needed for the government's plans to cut the consumption tax rate for food from 8 pct to 1 pct for two years from April 2027 as a measure for fighting inflation and to strengthen the country's defense capabilities.
In recent years, surpluses at the foreign exchange special account, which manages funds for currency market intervention, have reached about 5 trillion yen annually thanks to increases in the yen value of foreign currency-denominated assets due to the depreciation of the Japanese currency and in interest revenue reflecting higher interest rates overseas.
[Copyright The Jiji Press, Ltd.]
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