Panel Calls for Investments and Wage Hikes to Strengthen Economy

Tokyo, June 26 (Jiji Press)--A Japanese government advisory panel on Friday called for a virtuous cycle of investments and wage hikes to achieve a strong economy.

This call was included in the Fiscal System Council's proposals submitted to Finance Minister Satsuki Katayama before the government compiles a new basic policy on economic and fiscal management and reform.

The panel said that Japan's economy has exited from deflation and is transitioning from a stage of demand shortfalls to one of supply constraints.

Regarding the government's intention to reform its budget compilation process, including reducing its reliance on supplementary budgets, the panel stressed that it is necessary to maintain fiscal discipline despite various fiscal needs.

The panel also said that the government's new target of steadily reducing the country's ratio of public debt to gross domestic product, if properly planned out, would help enhance the predictability of multi-year fiscal management.

[Copyright The Jiji Press, Ltd.]