DPJ Manifesto to Seek Suprapartisan Talks on Consumption Tax

Tokyo, June 17 (Jiji Press)--The ruling Democratic Party of Japan's
campaign manifesto for the July 11 House of Councillors election will call
for the launch of suprapartisan talks on drastic tax system reforms
including a possible consumption tax rate hike, informed sources said
Thursday.
To address dire fiscal conditions, the DPJ will pledge to keep new
government bond issues for fiscal 2011, excluding refinancing bonds, at or
below 44.3 trillion yen set for the current fiscal 2010 that ends in March
next year, the sources said.
As another fiscal consolidation measure, the party will strive to
halve the combined annual primary budget deficit at the central and local
governments by fiscal 2015 and post a primary surplus by fiscal 2020.
While stressing the need for these fiscal rebuilding efforts, the
DPJ manifesto for the Upper House election will show the party's goal of
achieving annual average economic growth of 3 pct in nominal terms and real
growth of 2 pct by fiscal 2020.
Meanwhile, the DPJ will give up on its plan to double child-rearing
allowances in fiscal 2011 from the fiscal 2010 level of 13,000 yen a month
for each child of junior high school age or under.
The party is thus set to break its promise to pay 26,000 yen in
such allowances, which was made in its campaign manifesto for last year's
House of Representatives election.
Instead, the DPJ will allow the additional portion of the benefits
to be paid in kind, according to the sources.
Prime Minister Naoto Kan, also DPJ president, is set to announce
the Upper House election manifesto later on Thursday.