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(Provisional Translation)

Interim Report on the Integrated Reform of Expenditures and Revenues

Building a Streamlined and Well-muscled Government

Executive Summary

April 18, 2006
Nippon Keidanren

Japan's fiscal conditions have deteriorated to a state not found among developed countries, so that the Integrated Reform of Expenditure and Revenues is the pressing issue.

On this Interim Report, Nippon Keidanren picked up the challenges Japan faces in achieving reform and expressed its basic views.

On discussions regarding directions for reform must be based on the actual issues that the country faces, the ideal form that Japan's economy and society should take, and the roles that government should play to realize this.

Toward Creating reliable and dynamic economy and security that attracts all the people in and outside of Japan in response to the globalization of the Japanese economy and a society with a shrinking population, we should establish a "Streamlined and well-muscled government" and promote swiftly the Integrated Reform of Expenditures and Revenues.

every possible means should be employed to reform the expenditures side, first more than everything else. While monitoring the progress achieved in that area, the government must examine as quickly as possible drastic reform of the tax system

Issues for the Integrated Reform of Expenditures and Revenues

1. Improvement of the Simplicity and Efficiency of Government Administration

2. Securing the Sustainability of Public Finances and Prioritized Distribution

3. Establishment of a Sustainable Social Security System

4. Drastic Reform of the Taxation


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