Keidanren Proposes to Set Up IFI in Diet

Tokyo, April 13 (Jiji Press)--The Japan Business Federation, or Keidanren, offered Monday the idea of creating an independent fiscal institution, or IFI, to provide a basis for discussions on comprehensive tax, fiscal and social security reforms in the country.

In its proposal concerning the reforms, Japan's biggest business lobby underscored the importance of discussions in the Diet, the country's parliament, based on objective, highly credible future projections.

To establish formulas for such projections, setting up a permanent IFI in the Diet is one option, Keidanren said.

Envisaged functions of the suprapartisan institution also include analyzing fiscal policy measures and their results and giving lawmakers advice, it said, adding that the body may be tasked to prepare data for setting out a social security outlook in the future.

On fiscal consolidation, Keidanren advised that the government seek to achieve the primary budget balance in terms of a multiyear average, such as the average of three years, instead of the current single-year basis, with the fiscal balance checked annually.

[Copyright The Jiji Press, Ltd.]