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Challenges for Japan fs Fiscal Consolidation

Author

Listed:
  • Kazuyuki Sugimoto

    (Chairman, Japan Fair Trade Commission Former Professor, Graduate School of Public Policy, The University of Tokyo Former Administrative Vice-Minister, Ministry of Finance)

  • Junji Ueda

    (Former Director for Econometric Analysis, Policy Research Institute, Ministry of Finance)

Abstract

This paper describes Japan fs past and current fiscal situations and discusses necessary actions for future fiscal consolidation. Since 1990s, the government expenditure has steadily increased due to growing social security benefits along with aging society, but the level of government revenue has little changed. Despite the increase in government debt, actions for fiscal consolidation have been delayed due to lax monetary condition and lack of continuous commitment with public support. Since political support for fiscal policies are asymmetric between gausterity h and gexpansion f, it is vital for achieving fiscal consolidation to set up legislative fiscal rules with concrete targets and tractable measures, in addition to basic Public Finance Law.

Suggested Citation

  • Kazuyuki Sugimoto & Junji Ueda, 2013. "Challenges for Japan fs Fiscal Consolidation," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 9(4), pages 717-734, September.
    • Handle: RePEc:mof:journl:ppr023f
    as

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    File URL: http://warp.da.ndl.go.jp/info:ndljp/pid/11217434/www.mof.go.jp/english/pri/publication/pp_review/ppr023/ppr023f.pdf
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    References listed on IDEAS

    as
    1. Kazuyuki Sugimoto, 2012. "Public Finance and its Legal Framework: Toward a Legal Framework to Ensure Fiscal Consolidation and Fiscal Policy Management," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 8(1), pages 21-44, June.
    2. Kazuyuki Sugimoto, 2010. "A Study on Fiscal Policy Challenges in Japan," Public Policy Review, Policy Research Institute, Ministry of Finance Japan, vol. 6(4), pages 625-644, April.
    3. Mrs. Nina Budina & Ms. Andrea Schaechter & Miss Anke Weber & Mr. Tidiane Kinda, 2012. "Fiscal Rules in Response to the Crisis: Toward the "Next-Generation" Rules: A New Dataset," IMF Working Papers 2012/187, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    fiscal rule; fiscal consolidation;

    JEL classification:

    • H6 - Public Economics - - National Budget, Deficit, and Debt
    • N45 - Economic History - - Government, War, Law, International Relations, and Regulation - - - Asia including Middle East

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