Japan Aims to Achieve Primary Budget Surplus by FY 2020: Kan

Tokyo, June 14 (Jiji Press)--Japanese Prime Minister Naoto Kan said Monday that his government will include a goal of turning the country's primary budget balance to the black by fiscal 2020 in its medium- to long-term fiscal management strategy to be drawn up within June.

In response to a question by Sadakazu Tanigaki, leader of the main
opposition Liberal Democratic Party, at a House of Representatives plenary
session, Kan also expressed his resolve to create a powerful economy, strong
public finances and a robust social security system.
Kan also said that the government must attain a target of curbing
its fiscal 2011 bond issues, excluding refinancing bonds, at or below the
44.3 trillion yen planned for fiscal 2010.
A primary budget surplus means a situation in which spending is
covered by revenue without dependance on new debt issuance. In fiscal 2009,
the combined primary budget deficit at the central and local governments
stood at 40.6 trillion yen.
Tanigaki said that the LDP will not participate in suprapartisan
talks on restoring fiscal health, proposed by Kan, unless Kan's ruling
Democratic Party of Japan cancels its campaign manifesto for last year's
Lower House election, in which the DPJ took power from the LDP.
The DPJ manifesto, which includes new child allowances and other
measures requiring huge spending, would lead to fiscal collapse if it
remains valid, Tanigaki said.
But the prime minister reiterated that fiscal consolidation talks
should be held between the ruling and opposition camps without setting
preconditions.
Kan said that he will do all he can to lighten the load Okinawa
Prefecture bears in hosting U.S. military facilities and troops while
acknowledging the importance of a recent Japan-U.S. agreement on the
relocation of the U.S. Marine Corps' Futenma air station in the southernmost
Japan Prefecture.
The deterrence of U.S. troops in Japan, including the Marines, is
extremely important, Kan said.
Kan made these comments in response to Tanigaki's question that how
the prime minister will obtain Okinawa's consent to the base relocation plan
by the end of August, the deadline for Tokyo and Washington to fix details
of the Futenma transfer, including construction methods for a new facility
to take over the base's functions.
Japan and the United States late last month agreed to transfer the
Futenma base in Ginowan, Okinawa, to the Henoko coastal area of the Marines'
Camp Schwab in Nago, also in Okinawa, almost in line with the original
Futenma relocation plan agreed on between the two nations in 2006.
Tanigaki urged Kan to accept the opposition camp's demand that
former DPJ Secretary-General Ichiro Ozawa speak before the Diet, Japan's
parliament, over a funding scandal that has led to the indictment of some of
his former aides.
But Kan said Ozawa has already taken responsibility for the scandal
by stepping down from the key party post, adding that it is up to the Diet
to decide whether to summon him over the matter.
Tanigaki called on Kan to dissolve the Lower House for a snap
election. Kan responded that he plans to seek voter mandate in the coming
House of Councillors election, which is set to be held in July.
Kan was inaugurated as prime minister last Tuesday to replace Yukio
Hatoyama, a DPJ member, who stepped down over his mishandling of many policy
issues including the Futenma base relocation. Kan, who delivered his first
policy speech before the Diet on Friday, was facing Tanigaki's questions
about the speech at Monday's Lower House meeting.
On Tuesday, Kan is set to receive questions from opposition
lawmakers at the Upper House.