First, Japanese companies' competitiveness needs to be reinforced. Without lively business activities, we would not be able to create jobs and to improve the quality of life of the people. Second, the Japanese government is required to carry out policy measures targeted both on supply and demand sides as well as to strengthen the network between big businesses and small-medium enterprises. Third, the people's anxiety for the future should be eliminated by establishing sustainable social security system. The comprehensive tax, fiscal and social security system reform including raise of consumption tax rate is essential. Fourth, innovations such as introduction of larger administrative blocks and e-government, which will change people's mind fundamentally, should be promoted to adapt to changes both at home and abroad such as a globalizing economy and an aging society with a decrease of the birth rate.
The Japanese government is urgently requested to immediately construct the durable revenue structure to cover increasing expenditures in a mid-long term.
The delay of the measures will worsen the situation.
It is essential to review the revenue structure which depends excessively on the economic situation.
Starting FY2011, the consumption tax rate should be gradually raised without delay up to 10% at least in order to make up for a lack of the social welfare benefit. Furthermore, the rate should be raised at least 15% and more by the middle of 2020's while alleviating regressivity of the tax and gaining the public understanding.