Japan Panel Urges Govt to Continue Spending Reforms

Politics Lifestyle

Tokyo, May 21 (Jiji Press)--The Japanese government should continue spending reforms, including efforts to curb social security costs, for at least three more years from fiscal 2022, an advisory panel said Friday.

In its recommendations, submitted to Finance Minister Taro Aso, the Fiscal System Council called for "further efforts" after the end of the current reform period through fiscal 2021.

The government aims to get its primary budget balance into the black in fiscal 2025, against the estimated fiscal 2021 deficit of 20.4 trillion yen.

But a Cabinet Office estimate has suggested that the target is unlikely to be met even if high economic growth is achieved.

Social security spending is projected to rise sharply from fiscal 2022, when Japan's first baby boomers will start to turn 75, joining the so-called late-stage elderly.

[Copyright The Jiji Press, Ltd.]

Jiji Press