Fiscal Soundness

Tomorrow the cabinet is going to approve the general-account budget for fiscal 2015 in which the amount of government bonds to be newly issued remains below 40 trillion yen for the first time in six years. The Abe Administration is likely to attain its goal of halving the ratio of the primary balance deficit to GDP by FY 2015 from that in FY 2010. It shows PM Abe's firm determination and solid commitment to revitalize the Japanese economy and achieve fiscal soundness simultaneously. I have been greatly encouraged to receive the clear and strong political message to domestic and foreign people.

Fiscal health can never be restored without continued virtuous cycle of growth in economy, cuts in annual expenditures and public revenue reform. It is necessary to tackle the three key issues as a package. The growth of the economy and business expansion will increase tax revenue leading to fiscal soundness. Economic growth and fiscal rehabilitation can live together. The top two priorities are not supposed to walk alone.