Ministerial Committee on the Formulation of the Budget
Prime Minister Naoto Kan held a meeting of the Ministerial Committee on the Formulation of the Budget at the Prime Minister's Office.
Discussion took place on the Medium-term Fiscal Framework (FY2012-FY2014), the Mid-year Economic Projection for FY2011 (Cabinet Office), and the Economic and Fiscal Projections under Medium-term Fiscal Framework.
Based on the discussion, the Prime Minister said, "We have completed revision work on the Medium-term Fiscal Framework, which defines the general expenditures for the three-year period starting next fiscal year. Additionally, reconstruction from the earthquake is the top priority for the people and must be addressed through efforts by the entire government. On the other hand, amidst heightening market concerns over sovereign risks and fiscal risks globally, it is extremely important that we demonstrate our commitment toward the restoration of fiscal health.
The Medium-term Fiscal Framework decided today allows for the pursuit of the two challenges of post-earthquake reconstruction and fiscal consolidation in a balanced manner.
Specifically, post-earthquake reconstruction will be managed separately in a package with financial resources. For other purposes, we have decided to maintain an expenditure framework of about 71 trillion yen. This means that outside of the 71 trillion yen expenditure framework, a separate package will be set aside for post-earthquake reconstruction to manage expenditures together with financial resources.
After deciding the Medium-term Fiscal Framework, I would like you to continue to exert your utmost efforts in preparation toward the formulation of the FY2012 budget based on this framework."