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THE POLICY GOALS OF THE MINISTRY OF FINANCE (FY2016)

 

(provisional translation)

1.

General Goals

2.

Policy Goals

Policy Goal 1: Maintain stable public finance.

Policy Goal 2: Realize fair and equitable taxation.

Policy Goal 3: Appropriate management of national government assets and liabilities.

Policy Goal 4: Maintain credit to the nation’s currency and credit.

Policy Goal 5: Maintain trade order and promote the sound development of trade.

Policy Goal 6: Promote Stable and sound development of the international financial system and economic and social development in developing countries.

Policy Goal 7~11: Ensure the appropriate management of corporations, operation, etc. under the jurisdiction of the Ministry of Finance.


1.General Goals

 

General Goal 1. In light of the fact that Japan's fiscal situation is extremely severe, both when looked at in historical terms and in comparison with other countries, efforts should be made to continue the Comprehensive Reform of Social Security and Tax, and to achieve fiscal consolidation in both revenues and expenditures, based on the fiscal consolidation target of achieving surplus in the primary balance of both the central and local governments by no later than FY2020 and subsequently aiming to achieve stable reductions in debt as a percentage of GDP.

 

General Goal 2. As well as continuing to promote the Comprehensive Reform of Social Security and Tax, the government will implement structural reforms throughout the tax system (a tax system overhaul) that take into account structural changes in Japan's economy and society, such as rebuilding the social infrastructure for economic growth by shedding light on the younger generation, with a view to achieving the fiscal consolidation targets.

 

General Goal 3. In light of the economic and financial conditions as well as the fiscal situation, a government debt management policy should be implemented based on close dialogue with the market, thereby steadily procuring required fiscal funds with efforts to lower medium- to long-term financing costs. At the same time, treasury funds should be managed properly. Moreover, in light of changes in the socioeconomic situation, the Fiscal Investment and Loan Program (FILP) should be used to provide an appropriate response to demand for funds to meet policy needs. Furthermore, efforts should be made to optimize the use of central and local government assets by promoting partnership with local governments.

 

General Goal 4. The stability of the financial system must be secured through financial crisis management, together with efforts to develop and operate a financial safety net in cooperation with related organizations. Efforts should also be made to contribute to maintaining confidence in the currency system by ascertaining the state of currency circulation and preventing counterfeiting and forgery to ensure a smooth supply of high-quality currency.

 

General Goal 5. In order to contribute to the sound growth of the Japanese economy, support for the overseas expansion of Japanese companies should be promoted, along with efforts to ensure the sustainable development of the world economy, the stability and enhancement of international financial systems, including those in Asia, economic and social development in developing countries through quality infrastructure investment, and orderly development of international trade through active engagement in international cooperation. Efforts should also be made to enhance Japanese firms for global business development.

 

General Goal 6. In pursuing General Goals 1 to 5, as well as accelerating reconstruction work from the Great East Japan Earthquake, efforts should be made to ensure appropriate fiscal and economic management, working in partnership with relevant organizations in order to surely overcome deflation and achieve regeneration of the economy and restoration of fiscal health at the same time.

 

2.Policy Goals

 

Policy Goal 1: Maintain stable public finance

 

1-1 Improve the efficiency and quality of public finances through prioritized allocations of budget
 

1-2 Maintain necessary government revenue
 

1-3 Improve transparency of budget enforcement and ensure proper budget enforcement

 

1-4 Disclose the information of the nation’s fiscal conditions accurately by compiling the settlement of accounts

 

1-5 Appropriately implement administrative tasks relating to local government revenue and expenditure, including the formulation of local government finance programs, as well as those relating to fiscal transfers between the national and local governments

 

1-6 Establish and properly operate the fair, efficient and transparent systems of public finance and accounting

 

Policy Goal 2: Realize fair and equitable taxation.

 

2-1 Steadily implement a tax system that will sustain a positive economic cycle, consider a tax system that can adapt to structural changes in Japan's economy and society and respond to urgent issues, and enhance PR for the tax system
 

2-2 Assess and collect national taxes fairly and equitably

 

2-3 Promote the sound development of the alcoholic beverage industry

 

2-4 Ensure the appropriate management of certified public tax accountants’ operations

 

Policy Goal 3: Appropriate management of national government assets and liabilities.

 

3-1 Ensure stable and smooth issuance of Japanese Government Bonds and minimize medium-to long-term funding costs

 

3-2 Respond accurately to demand for funding on the part of agencies implementing the necessary projects targeted by the FILP (Fiscal Investment and Loan Program), promote disclosure, and enhance check functions in relation to such agencies

 

3-3 Enhancement of the proper management/disposal, effective use and provision of information on government assets, including government buildings and housing for central government officials

3-4 Manage treasury funds efficiently and accurately

 

Policy Goal 4: Maintain credit to the nation’s currency and credit.

 

4-1 Ensure the smooth supply of currency and prevent its counterfeiting and forgery
 

4-2 Set up and operate an appropriate financial safety net, and respond promptly and accurately to financial crises

 

Policy Goal 5: Maintain trade order and promote the sound development of trade.

 

5-1 Set appropriate tariff rates and improve the customs system, taking into account domestic and international economic conditions

 

5-2 Maintain and strengthen the multilateral trading system, and promote economic partnerships and trade facilitation in customs-related fields
 

5-3 Ensure proper imposition and collection of customs duties, prevent smuggling of illegal drugs, firearms, and other anti-social contraband, and improve convenience in customs procedures

 

Policy Goal 6: Promote stable and sound development of the international financial system and economic and social development in developing countries.

 

6-1 Ensure stability in foreign exchange markets, and enhance stability in international financial systems, including those in Asia, as well as ensuring their appropriate operation
 

6-2 Promote a wide variety of international cooperation, including financial support and intellectual assistance, to help developing countries stably develop their economy and society
 

6-3 Support Japanese firms to expand their business abroad

 

Policy Goal 7~11: Ensure the appropriate management of corporations, operation, etc. under the jurisdiction of the Ministry of Finance.

 

7-1 Ensure appropriate and efficient management of government financial institutions, etc.

 

8-1 Manage the sound operations of the earthquake reinsurance
 

9-1 Create and manage stable and efficient national public service mutual aid system, etc.

 

10-1 Ensure the appropriate management of the operations and organization of the Bank of Japan
 

11-1 Promote the sound progress of the tobacco and salt industries, and ensure their appropriate management

 

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