Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

General Goal 1

From Now on in Fiscal Management, Promote the Improvement of Expenditure Qualities, Restraints in Spending, etc., Continue to Study the Desirable Relationship between Benefits and Burdens, and thereby Transform the Fiscal Structure into an Efficient and Sustainable one. And Strive to Realize Sustainable Private-sector-led Growth by Pursuing such Fiscal Structural Reforms along with other Various Reforms Initiated by the Government.
　

Progress toward
accomplishment
　

Largely appropriate
Largely effective
Largely efficient

Largely precise

Useful proposals presented on the relevant policy.
　

(Reasons for the decision on the degree of accomplishment)
In formulating the FY 2006 budget, the Ministry of Finance continued the basic policy of “budget committed to reform”, trying to curb outlays and improving their quality, and kept the total general expenditures below the year-before level as done in the previous year. As a result of these efforts, the primary balance of the central and local governments in FY 2006 is expected to improve.




　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

General Goal 2

Based on the “Policy Guidance on the Establishment of a Desirable Tax System”, Mid-Term Report “A　Sustainable Tax System for Japan’s Aging Society”, etc. Establish a Desirable Tax System Necessary for Realizing a Sustainable Socioeconomic Vitalization in Response to Economic and Social Structural Changes―such as the Declining Birthrate, Aging Population, and Internationalization―and Fiscal Conditions.
　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

Largely precise

Useful proposals presented on the relevant policy.

(Reasons for the decision on the degree of accomplishment)
The FY 2006 tax reform revised a wide range of taxes toward establishing a “desirable tax system” to invigorate a sustainable economic society. The Subcommittee on Basic Issues of The Tax Commission deepened discussions on individual income tax problems including medium- and long-term issues before submitting the “Summary Report on Individual Income Tax” to a general meeting of the commission in June 2005. The Subcommittee on Basic Issues of The Tax Commission and its NPO Tax Working Group deepened discussions on new taxes on NPOs and donations in view of a public corporation reform before submitting the “Basic View about New Taxes on NPOs and Donations” to a general meeting of the commission in June 2005.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

General Goal 3
　

Under the Principles of the Administrative and Fiscal Reforms, Prioritize the Target Areas and Projects of the FILP (Fiscal Investment and Loan Program) by Focusing on such Areas and Projects as Cannot Be Implemented Solely by Private Sectors, and Respond to Financial Demands Really Necessary for Policy Objectives, such as Building Safety-Net lending, in Consideration of Socioeconomic Conditions.
　

Considerable progress toward accomplishment

Appropriate
Effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.
Useful proposals presented on policy evaluation.

(Reasons for the decision on the degree of accomplishment)
In formulating the FY 2006 Fiscal Investment and Loan Program, the Fiscal System Council’s FILP Subcommittee conducted a follow-up on the “Comprehensive Review of the FILP Reform” to confirm the soundness of all FILP projects. Based on the follow-up, the Ministry prioritized FILP projects and improved their efficiency. As a result, the FY 2006 FILP size fell 12.5% from the previous year to less than 40% of the past peak. Against the backdrop of historically low interest rates and a reduction of Fiscal Loan Fund assets under the FILP reform, the Ministry took an extraordinary emergency measure to transfer 12 trillion yen from the Fiscal Loan Fund Special Account’s reserves for interest rate fluctuations to the National Debt Consolidation Fund in order to reduce the outstanding national debt.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

General Goal 4

Set up and Operate an Appropriate Financial Safety Net and Respond Promptly and Accurately to Financial Crises with Aims of Guaranteeing the Stability of the Financial System in Cooperation with Related Organizations.

　

Progress toward
accomplishment

Largely appropriate
Largely effective
Largely efficient

Largely precise
　

Proposals presented on policy evaluation.

(Reasons for the decision on the degree of accomplishment)
The full introduction of the payoff deposit insurance cap was implemented without confusion in April 2005. The major banks reported a lowered nonperforming loan ratio of 1.8% in their financial statements for FY 2005 (against 2.9% in the previous year), indicating a steady improvement even after they achieved the goal of halving the ratio under the “Financial Reconstruction Program” in March 2005. The Ministry developed regulations for the implementation of the Insurance Business Law on April 1, 2005, as part of institutional development for stabilizing the financial system. The Ministry also set an appropriate ceiling on government guarantees as a safety net and achieved steady progress in collecting public funds invested in banks.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

General Goal 5

Strive for Sustainable Development of the World Economy, Strengthening of the International Financial System, Strengthening of Regional Cooperation in Asia, Economic and Social Development in Developing Countries, and Orderly Development of International Trade through Active Engagement in International Cooperation on Global Issues in order to Contribute to Sound Growth of the Japanese Economy.

　

Considerable progress toward accomplishment
　

Appropriate
Largely effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.
　

(Reasons for the decision on the degree of accomplishment)
Japan discussed the world economy, development, measures against terrorist funding and other matters at meetings of Group of Seven finance ministers and central bankers and other forums. On international financial institution reforms, Japan made proposals for the International Monetary Fund’s enhanced surveillance and lending facility revisions, and positively led discussions on the IMF quota review. Under the ASEAN +3 framework, Japan agreed on, considered and materialized measures to enhance the effectiveness of the Chiang Mai Initiative. As for the Asian Bond Markets Initiative, Japan launched a study on “asset-backed Asian currency basket bonds” in a bid to enhance the Asian market. Japan also expanded policy consultations with developing countries and announced the "Enhanced Private-Sector Assistance for Africa (EPSA)." In addition, Japan addressed international financial institutions’ debt relief for heavily indebted poor countries. As for the World Trade Organization negotiations, the Hong Kong ministerial declaration was adopted to give a roadmap for concluding the Doha Round talks within 2006. As for economic partnership agreements (EPAs), Japan effectuated an EPA with Mexico and signed an EPA with Malaysia. Japan also positively negotiated such EPA, for example, with ASEAN as a whole and launched a joint study on a bilateral EPA, for example, with India.

　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

General Goal 6

Ensure Appropriate Fiscal and Economic Management through the Ceaseless Implementation of Fiscal and Economic Structural Reforms, in Cooperation with Related Organizations.

　

Progress toward
accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry closely cooperated with relevant government agencies such as the Cabinet Office, the Bank of Japan and other relevant organizations in fiscal and economic management. The Ministry accumulated consultations with the Cabinet Office to make accurate decisions and analyses based on the available information for working out “Monthly Economic Reports”, government views on current situation of the economy, and the “FY 2006 Economic Outlook and Basic Stance for Economic and Fiscal Management” (adopted by the Cabinet on January 20, 2006), an economic picture for the fiscal year. As a result of the fiscal and economic management in FY 2005 described above, the Japanese economy achieved a steady recovery mainly led by private sector demand. The primary balance for the national and local governments is expected to improve.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 1-1

Improve the Efficiency and Quality of Public Finance through Prioritized Allocations of Budget.

　

Considerable progress toward accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In formulating the FY 2006 budget, the Ministry reflected the fruit of the medical system reform, the “Three-part Reform Package” in the fiscal relationship between the central and local governments, reforms to reduce to total personnel expenses for public employees and other reforms that the Cabinet has addressed. The Ministry conducted a strict review on overall expenditure and gave priority to selected areas in budget allocations, e.g., cutting general account expenditures for areas other than social security and science over the previous fiscal year. Through these efforts, in the FY 2006 budget, the amount of the general expenditures declined from the previous year for the second consecutive year, and the amount of  new government bonds issues dropped  below  30 trillion yen for the first time in five years. With regard to special accounts The Ministry has been planning to promote in-depth reforms in the coming five years, including abolishment and consolidation of special accounts. For the FY 2006 budget, the Ministry reviewed outlays thoroughly and allocated reserves and surpluses totaling 13.8 trillion yen to the fiscal consolidation. Furthermore, the Ministry utilized the policy evaluation, budget execution results and audit reports to improve the quality and efficiency of the budget.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 1-2

Maintain Necessary Government Revenue.
　

A degree of progress toward accomplishment
　

Largely appropriate
Largely effective
Largely efficient

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In formulating the FY 2006 budget, the Ministry made an appropriate tax revenue estimate, and secured as large non-tax revenues as possible to curb government bond issues, while prioritizing, saving and rationalizing outlays under the policy of maintaining and enhancing expenditure reform. As a result of these efforts, the amount of new government bonds issues dropped below 30 trillion yen for the first time in five years. Tax revenues are estimated to increase from an actual level of 45.6 trillion yen in FY 2004 to 45.9 trillion yen (48.9 trillion yen before an income tax revenue transfer to local governments) in FY 2006. In order to improve the accuracy of the FY 2006 tax revenue estimate, the Ministry increased the number of large companies subject to revenue surveys.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 1-3

Maintain the Proper Enforcement of the Budget.


　

A degree of progress toward accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry selected 53 projects for the budget   execution survey and reflected the survey results in improving the quality and efficiency of FY 2005 budget execution and in formulating the FY 2006 budget. In formulating FY 2006 budget , the Ministry enhanced efforts to reflect accurate execution results, reviewing each expenditure items. On the other hand, it is noted that discretionary contracts and other deals between the government and public corporations are unclear and inefficient.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 1-4

Disclose the Information of the Nation’s Fiscal Conditions Accurately by Compiling the Settlement of Accounts.


　

Considerable progress toward accomplishment
　

                   Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
The Ministry continued efforts to disclose information more user-friendly. The Ministry worked to send the settlement of accounts for FY 2004 to the Board of Audit on September 6, about three months ahead of the statutory deadline, by computerizing accounting procedures, so that the Cabinet could submit it to the Diet around November 20 as in the previous year.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 1-5

Appropriately Implement the Operations for Revenue and Expenditure of the Local Governments and for the Fiscal Transfer between the National and Local Governments.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In the FY 2006 local public finance program, local government expenditures were reviewed thoroughly as well as central government spending and reduced over the previous fiscal year, considering that local public finance would remain in difficult situation in spite of an estimated local tax revenue increase.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 1-6

Establish and Properly Operate the Fair, Efficient, and Transparent Systems of Public Finance and Accounting.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, each ministry published financial statements for  FY 2003 and 2004. (in addition to a combination of general and special accounts, the general account and each special account, each ministry’s financial statements covered data integrating general, special and public corporation accounts for FY 2003 for the first time ever). The Ministry prepared and published the “financial statements for the central government” (for FY 2003), based on each ministry’s financial statements, in order to provide financial stock and flow data for the whole of the central government (such statements for FY 2004 are under preparation). In this way, financial statements have been made available for disclosing central government financial conditions utilizing corporate accounting standards.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 2-1
　

Realize a Tax System in Accordance with the Tax Principles of Fairness, Neutrality, and Simplicity, and Suitable to the Change of Social and Economic Conditions.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
Toward establishing a “desirable tax system,” the FY 2006 tax reform included a full-fledged revenue transfer from the national income tax to  individual inhabitants tax, the abolition of the fixed-rate income tax reduction and measures regarding corporate tax, land and housing tax, international taxation, liquor tax and tobacco tax. In a bid to inform the people of the reform, the Ministry prepared and distributed pamphlets about the present state and problems of the current Japanese tax system and tax reforms, sent e-mail magazines and renewed Internet kid's pages. The Ministry thus conducted a wide range of public relations activities to inform a wide range of people of the reforms.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 2-5

Impose and Collect Customs Duties Properly.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

　

Precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry reviewed its website based on the “basic view (guideline) on electronic provision of administrative information.” As a result, a remarkable increase was seen in the number of hits on the website. On the “operation of customs consulting services (users’ satisfaction with customs consulting services),” the Ministry implemented measures to solve complaints about customs officials’ knowledge on law, regulations and goods, as given in a FY 2004 user satisfaction questionnaire survey. As a result, the satisfaction rating in FY 2005 increased sharply from 24.8% in FY 2004 to 46.1%. The Ministry also instructed each customs office to appropriately manage written requests for prior consulting services through progress management slips. As a result, customs offices made responses to 95.8% of requests within 30 days. The percentage rose by 1 point from 94.8% in the previous year. The average number of days taken to process such requests was shortened by 0.4 day, indicating a steady improvement.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 3-1

Ensure the Fund Allocations of the FILP (Fiscal Investment and Loan Program) to the FILP to Carry Out Projects that Cannot Be Implemented Solely by Private Sectors and Are Necessary for Policy Objectives , and Improve the Prioritization and Efficiency of its Fund Supply.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.
Useful proposals presented on policy evaluation.

(Reasons for the decision on the degree of accomplishment)
In formulating the FY 2006 Fiscal Investment and Loan Program, the Fiscal System Council’s FILP Subcommittee conducted a follow-up on the “Comprehensive Review of FILP Reform” to confirm the soundness of all FILP projects. Based on the follow-up, the Ministry prioritized FILP projects and improved their efficiency. As a result, the FY 2006 FILP size fell 12.5% from the previous year to less than 40% of the past peak. In an attempt to enhance examinations on fiscal loans, the Ministry conducted hearings from local governments, as borrowers of such loans, as necessary to grasp their financial conditions.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 3-2

Manage and Operate the Fiscal Loan Fund Appropriately, and Disclose Information Thoroughly.


　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.
Useful proposals presented on policy evaluation.

(Reasons for the decision on the degree of accomplishment)
In formulating the FY 2005 Fiscal Investment and Loan Program, the Ministry implemented appropriate asset-liability management, enhanced policy cost analyses and positively disclosed information on future national contributions regarding FILP projects. The Ministry also launched a new system in July 2005 to conduct on-site monitoring of public corporations. After confirming on-site monitoring procedures, the Ministry completed such monitoring of two public corporations.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 4-1

Manage and Dispose the National Property Efficiently and Appropriately, and Utilize Electronic Data Processing System for Keeping up on the Current Conditions of the National Property Accurately and Improving the Disclosure of Information.


　

Considerable progress toward accomplishment

Largely precise

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In a bid to further improve the efficiency of the national property administration in FY 2005, the Ministry submitted a “bill to amend the National Property Law and the like to promote efficient utilization of national properties” to the Diet on February 10, 2006, during its 164th session. In view of the serious public finance situation, the Ministry tried to solve problems involving national property land plots that were difficult to sell immediately. As a result, auctions covered 100% of the idle national property land plots, exceeding the coverage target. The Ministry also implemented an audit of administrative properties in order to promote appropriate, efficient utilization of the national properties controlled by each government agency. The Ministry completed the sale of Nippon Telegraph & Telephone Corp. shares available for selling.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 4-2

Implement Efficiently the Maintenance Plans for the Government Buildings and Official Housing.


　

Considerable progress toward accomplishment

Appropriate
Effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In a bid to further improve the efficiency of the national property administration in FY 2005, the Ministry submitted a “bill to amend the National Property Law and the like to promote efficient utilization of national properties” to the Diet on February 10, 2006, during its 164th session. The Ministry also worked out coordination plans on acquisitions of 470 housing facilities for central government officials and signed PFI (private finance initiative) contracts for two facilities. For housing facilities that cannot be covered by the PFI approach, the Ministry compiled a report on the “reduction of costs for housing for public servants” to take advantage of private sector know-how for cutting costs.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 4-3

Manage the Treasury Fund Efficiently and Accurately.

　

Progress toward
accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry failed to achieve the goal of increasing the number of hits on the website for receipts and payments of the national treasury with the private sector, as well as for treasury cash management report. But the Ministry tried to efficiently manage cash in the national treasury through such measures as a change of ordinary local allocation tax payment dates. As a result, the monthly average balance of treasury cash deposits was reduced from the previous year.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 4-4

Ensure Smooth and Stable Financing and Curb Financing Cost in the Long-term.


　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry introduced new government bonds for individual investors and implemented overseas investor relations meetings to diversify JGB holders. The Ministry also expanded the scope of government bonds subject to buybacks for pre-maturity redemption and conducted interest rate swap transactions to appropriately manage debt. The Ministry tried to promote communications with the bond market through meetings with JGB market special participants. While failing to increase the number of hits on the JGB website from the policy target, the number of hits on the JGB website and a separate homepage for JGBs for individuals rose substantially from the previous year. Hits on all JGB-related websites thus increased.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 4-5

Maintain Credibility to the Nation’s Currency by Appropriately Minting Coins, Planning for Manufacturing the Bank of Japan Notes, and Preventing their Counterfeiting and Corruption, etc.


　

Progress toward
accomplishment
　

Appropriate
Effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry set and achieved numerical targets for the issuance of coins and Bank of Japan notes. The Ministry cooperated with other relevant government agencies in appropriate implementation of measures against currency counterfeiting that the Ministry worked out together with the National Police Agency and the Financial Services Agency as well as private sector experts.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 4-6

Set up and Operate an Appropriate Financial Safety Net, and Respond Promptly and Accurately to Financial Crises.

　

Progress toward
accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Proposals presented on policy evaluation.
　

(Reasons for the decision on the degree of accomplishment)
The full introduction of the payoff deposit insurance cap was implemented without confusion in April 2005. The major banks reported a lowered nonperforming loan ratio of 1.8% in their financial statements for FY 2005, indicating a steady improvement, even after they achieved the goal of halving the ratio under the “Financial Reconstruction Program” (to 2.9%) in March 2005. The Ministry developed regulations for the implementation of the Insurance Business Law on April 1, 2005, as part of institutional development for stabilizing the financial system. The Ministry also set an appropriate ceiling on government guarantees as a safety net, and achieved steady progress in collecting public funds invested in banks.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 5-1

Set up an Appropriate Tariff Rate and Improve the Customs System Taking into account Domestic and International Economic Conditions.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
The Ministry reduced tariffs on petroleum products along with the elimination of tariffs on crude oil under the FY 2006 tariff amendment. As the government continued united efforts to fight against copycat products, pirated copies and terrorism, the Ministry made institutional revisions to designate goods infringing intellectual property right and narcotic drugs as non-exportable goods, and require foreign trade ships to report cargoes to authorities before entering Japanese ports.

　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 5-2

Strengthen the Multilateral Trading System and Promote Economic Partnership.

　

Considerable progress toward accomplishment

Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
Japan actively participated in the WTO Doha Round negotiations; In the ministerial meeting that took place in December 2005, the Hong Kong ministerial declaration was adopted to stipulate roadmap for the conclusion of the negotiations. Moreover, Japan, in order to promote trade facilitation, made joint proposals with other WTO members as well as holding relevant seminars for developing countries. As for bilateral economic partnership agreements, an EPA with Mexico took effect on April 1, 2005. In December 2005, Japan signed an EPA with Malaysia. Furthermore, Japan proceeded with EPA negotiations with, for example, ASEAN as a whole and Chile, and launched bilateral EPA studies with India, Switzerland and Australia.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 5-3

Improve the Users’ Convenience in the Customs Procedures.

　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

　

Precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry introduced the special export declaration system to accelerate export customs clearance for exporters who are excellent in compliance with law. The Ministry also simplified and unified port arrival and departure report forms to meet the effectuation of the Convention on Facilitation for International Maritime Traffic, 1965. Based on a questionnaire survey on users’ satisfaction with import and export customs clearance, the Ministry tried to improve relevant officials’ contacts with users and achieved better satisfaction than in the previous year. The Ministry enhanced computer system management to raise the capacity utilization ratio to almost 100% for the Nippon Automated Cargo Clearance System and the Customs Procedure Entry System. Regarding these customs clearance systems, the Ministry adopted and published a business and system optimization plan for customs clearance operations (export, import, port and airport procedures) in March 2006.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 5-4

Prevent the Smuggling of Illegal Drugs, Firearms, and Other Anti-social Contrabands.
　

Considerable progress toward accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In order to promote measures against terrorism and stolen vehicles in FY 2005, the Ministry enhanced a crackdown on illegal exports by revising notifications to toughen customs clearance procedures for used vehicle exports and to launch a follow-up on illegal exports such as roundabout exports of substances related to weapons of mass destruction. The FY 2006 tariff amendment required foreign trade airplanes and ships to give authorities reports on their passengers and cargoes before entering Japanese ports, banned imports of cards to be used as counterfeit credit cards, prohibited imports of viruses feared to be used for bioterrorism on the precondition of domestic law development, and bared narcotic drugs and goods infringing intellectual property right from being exported. Among performance indicators, the “awareness of crackdowns on smuggling” increased as the Ministry enhanced border crackdowns on and public relations and enlightenment activities against social evils including illegal drugs. Other performance indicators remained high, mirroring substantial progress in qualitative improvement of anti-smuggling operations. “The number of smuggling cases solved through excellent ideas or investigation methods” increased its ratio to the number of detected smuggling cases, reflecting qualitative improvement of anti-smuggling operations. Of these solved smuggling cases, the portion rose considerably for those solved through utilization of information gained as a result of customs officials’ efforts.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 5-5

Promote the International Harmonization of Customs Procedures, etc. and Technical Assistance in the Customs Field.


　

Considerable progress toward accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
As for the WTO negotiations, Japan vigorously promoted trade facilitation talks by cooperating closely with other WTO member countries in submitting proposals. At the World Customs Organization (WCO), the Asia-Pacific Economic Cooperation forum (APEC), the Asia-Europe Meeting (ASEM) and bilateral talks, Japan urged other countries to accede to the Revised Kyoto Convention that took effect in February 2006. In order to increase the number of signatories to the revised Convention, Japan positively implemented capacity-building activities for Asian and other developing countries. An economic partnership agreement （EPA） with Mexico (put into effect in April 2005) and an EPA with Malaysia (signed in December 2005) included provisions for harmonization and simplification of customs procedures. As for efforts to conclude bilateral customs mutual assistance agreements, Japan signed a customs cooperation arrangement with Canada in June 2005 and effectively concurred with the European Union on a bilateral customs mutual assistance agreement in March 2006. Japan and China took final procedures toward their signing of a similar bilateral agreement. Japan ratified the Convention on Facilitation for International Maritime Traffic, 1965 in September 2005. As the FAL Convention took effect in Japan in November 2005, the Ministry of Finance unified port entry report forms into a simple form as stipulated in the convention.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 6-1

Ensure Stability in Foreign Exchange Market and Build a Robust International Financial System and Conduct Appropriate Operation.

　

Considerable progress toward accomplishment
　

Appropriate
Largely effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In order to ensure stability in the foreign exchange markets, Japan kept a close watch on market developments, collected information at home and abroad, and promoted international cooperation among the Group of Seven (G7) and other forums. As for the stabilization of the international monetary system, Japan has led discussions on International Monetary Fund (IMF) reforms including a quota review and made positive efforts to enhance the IMF’s policy surveillance and improve its lending facilities. On East Asian financial cooperation, Japan agreed on, considered and materialized measures to enhance the effectiveness of the Chiang Mai Initiative (CMI), including  integration and enhancement of ASEAN+3 economic surveillance into the CMI. As for the Asian Bond Markets Initiative, Japan launched a study on “asset-backed Asian currency basket bonds” in a bid to enhance the Asian market. As part of measures for counter terrorism financing, Japan implemented asset freezing in cooperation with relevant foreign countries and organizations.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 6-2

Promote a Wide Variety of International Cooperation, Including Financial Support and Technical Assistance, to Help Developing Countries Stably Develop Their Economy and Society.


　

Considerable progress toward accomplishment
　

Appropriate
Largely effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
Japan addressed assistance to developing countries in cooperation with international financial institutions, expanding policy consultations with and country-wise assistance programs for developing countries and announcing the "Enhanced Private-Sector Assistance for Africa (EPSA)." Japan also contributed to international financial institutions' debt relief for heavily indebted poor countries, and addressed developing countries' debt rescheduling through the Paris Club . In addition, Japan implemented intellectual assistance to improve the administrative enforcement capacity of developing countries by holding seminars and sending experts.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 7-1

Ensure the Appropriate and Efficient Management of Government Financial Institutions.

　

Progress toward
accomplishment
　

Appropriate
Largely effective
Largely efficient
　

Largely precise
　

Proposals presented on policy evaluation.

　

(Reasons for the decision on the degree of accomplishment)
Based on the public corporation consolidation program, the Ministry reviewed operations of government financial institutions and prioritized measures for them. The Ministry cooperated with other relevant government organizations in implementing efficient inspections of these institutions and in securing their financial soundness and improving operational management based on inspection results.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 7-2

Manage the Sound Operations of the Earthquake Insurance.


　

Considerable progress toward accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In order to raise the earthquake insurance diffusion rate, the Ministry implemented public relations activities using advertisement media to publicize the necessity of such insurance directly to the people. In a bid to improve the effect of advertisement, the Ministry put advertisement posters on bulletin boards of local government offices and facilities instead of railway stations that had traditionally displayed such posters. In FY 2005, the diffusion rate scored a 1.7-point rise, larger than a 1.3-point increase in the previous year.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 7-3

Create and Manage the Stable and Efficient National Public Service Personnel Mutual AID System.


　

Progress toward
accomplishment
　

Appropriate
Effective
Largely efficient

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
As instructed by the Prime Minister in September 2005, to promptly work out a policy on unification of pension plans for employees, the Ministry compiled key points at a meeting with other relevant ministries in December 2005. On the other hand, the ruling camp's pension system reform council compiled the concept and direction of the reform. In January 2006, the government and ruling camp launched consultations on the pension system unification and held talks toward the Cabinet's decision coming by late April 2006 on a basic policy for the unification. The Ministry appropriately addressed the revision of the nursing care insurance system and social security agreements with France and Belgium.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 7-4

Ensure the Appropriate Management of the Operations and Organization of the Bank of Japan.


　

Progress toward
accomplishment
　

Appropriate
Effective
Efficient

　

Largely precise
　

Proposals presented on policy evaluation.
　

(Reasons for the decision on the degree of accomplishment)
In FY 2005 as the first year for its medium-term strategic framework, the Bank of Japan took various actions to pursue more advanced central banking services, and published its action plans for FY 2006 and a breakdown of FY 2004 general and administrative expenses and costs as suggested in the reorganization and rationalization plan for special public institutions. These measures are expected to contribute to the central bank's appropriate management. Through approval of a budget for general and administrative expenses and costs and financial statements, the Ministry achieved some progress in securing the appropriate operational and organizational management at the Bank of Japan.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Policy Goal 7-5

Promote the Sound Progress of the Tobacco and Salt Industries, and Ensure their Appropriate Management.


　

Considerable progress toward accomplishment
　

Appropriate
Effective
Efficient

　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry achieved the target number of days for processing applications for tobacco retail licenses and for registering salt manufacturers, importers and wholesalers. In line with the World Health Organization’s Framework Convention on Tobacco Control, the Ministry appropriately implemented domestic measures including the adoption of new warnings. In August 2005, the Ministry issued a notification to positively implement measures for tobacco vending machines to help prevent minors from smoking. In addition, the Ministry took measures to support the "R&D project for upgrading salt manufacturing technologies" that the Salt Industry Center of Japan has urgently implemented to improve the Japanese salt industry's international competitiveness.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Organizational and Operational Principles 1

Fulfill its Functions of Policy Planning and Coordination.

　

Progress toward
accomplishment
　

Appropriate
Largely effective
Largely efficient

Largely precise
　

Useful proposals presented on the relevant policy.
　

(Reasons for the decision on the degree of accomplishment)
In FY 2005, the Ministry of Finance addressed the review of social security systems, the construction of a "desirable tax system," the trinity reform and other Fiscal Structural Reforms to achieve a primary budget surplus in the early 2010s. The Ministry also tackled reforms for realizing a simple and efficient government, the enhancement of national debt management policies, the promotion of economic partnership agreement negotiations and contributions to the sustainable development of the global economy through such measures as review of the Chiang Mai Initiative. In this respect, the Ministry planned basic fiscal and economic policies from the comprehensive and fundamental perspectives, while securing in-house communications through various meetings on policy agenda and regular meetings of regional financial bureau chiefs as well as contacts and coordination with regional finance bureaus.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Organizational and Operational Principles 2

Develop and Maintain Highly Professional, Capable and Principled Human Resources.

　

Progress toward
accomplishment

Appropriate
Effective
Largely efficient
　

Precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
The Ministry of Finance has the Policy Research Institute,  the Customs Training Institute and the National Tax College to develop training systems meeting financial administration environment changes and professional expertise and implement training under such systems. Each institute reviewed details of training, established new training courses and realigned existing courses in light of training needs at the workplace, workers’ requests and administrative environment changes.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Organizational and Operational Principles 3

Provide and Disclose Information to the People and the Market and Collect Opinions.


　

Progress toward
accomplishment
　

Largely appropriate
Largely effective
Largely efficient
　

Largely precise
　

Proposals presented on policy evaluation.
　

(Reasons for the decision on the degree of accomplishment)
The number of hits on the Ministry of Finance website increased as the Ministry tried to positively and promptly provide administrative information through electronic means and utilize figures, audio data and moving pictures for easier-to-understand information services. The Ministry also improved the website and its design to allow viewers to grasp the whole picture of information. In expanding exchange of opinion meetings, the Ministry allowed the Minister, Senior Vice Minister and Parliamentary Secretary to have direct exchange of opinion meetings with citizens who responded to open invitations. The Ministry held briefings on information disclosure to help ensure prompt and appropriate information disclosure procedures. The Ministry also responded appropriately to the Personal Information Protection Law by utilizing seminars to disseminate and promote compliance with safety management rules for personal information protection as worked out before the implementation of the law in April 2005.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Organizational and Operational Principles 4

Promote Information Technology in its Administration towards the Realization of the “Electric Government.”


　

Progress toward
accomplishment

Appropriate
Effective
Largely efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

　

(Reasons for the decision on the degree of accomplishment)
The Ministry of Finance steadily promoted online network utilization and other measures under the “MOF e-government building program” and worked out “the action plan for promotion of online network utilization.” The Ministry also cooperated and consulted with other government organizations to optimize these organization s’ three common operations or systems, their four individual operations or systems, and the MOF network.
　

Goal

Degree of accomplishment of the goal

Process of administrative operations

Analysis of

the results

Proposals presented for improvements

Organizational and Operational Principles 5

Ensure Effective and Efficient Organizational Management through Steady Policy Evaluation, etc.

　

Progress toward
accomplishment
　

Appropriate
Effective
Efficient
　

Largely precise
　

Useful proposals presented on the relevant policy.

(Reasons for the decision on the degree of accomplishment)
In FY 2005 as well as earlier years, the Ministry steadily implemented the  personnel reduction, the improvement of cost efficiency, and regulatory reform. For its policy evaluation, the Ministry steadily worked out an implementation plan and prepared an evaluation report. In this respect, the Ministry produced a summary version of the report, and increased and reviewed indicators to further improve the evaluation. The Ministry also made further improvements in the utilization of policy evaluation results at each government agency for budget formulation and other purposes.