On January 14, the Cabinet officially decided to convene the ordinary
session of the Diet on January 24. Last week on January 10, Chief
Cabinet Secretary Suga had attended the Rules and Administration
Committees in both Houses and had obtained consents on the schedule.
The session will be for 150 days until June 22. The ruling parties
plan to hold the four speeches including Prime Minister Shinzo Abe’s
general policy speech on the day of convening and interpellation
session by the party leaders on January 28-30.
On January 7, Prime Minister Abe showed his determination to continue
efforts to get out of the deflation and to achieve fiscal soundness
simultaneously in the second year of his term. In light of the
scheduled consumption tax-hike in April this year, the Cabinet Office
seems to be having a concern that it may have negative impacts on the
economy, wiping out the influences of Abe’s economic policy dubbed
“Abenomics”.
It is scheduled that Prime Minister Abe gives a keynote speech in the
opening session of annual meeting of the World Economic Forum (Davos
Convention) to be held in Switzerland on January 21-23 for the first
time as Japanese leader. Abe will likely appeal the Abenomics and the
concept of “proactive contribution to peace” and his diplomatic
policy at the international summit to the world.
Abe has regarded the ordinary session of the Diet to be convened on
January 24 as “Diet to achieve positive cycle of the economy,”
seeking passage of the 95.88 trillion yen of the initial budget FY2014
as well as the 5.46 trillion yen of supplementary budget for this year
to give backgrounds to the economic stimulus package to be submitted
on the same day. Also, Abe plans to revise the growth strategy by
mid-January to accelerate structural reforms in the field of
employment/labor, agriculture, medical care and nursery. Meanwhile,
the Cabinet held the first meeting of the National Strategic Special
Zone Advisory Council on January 7 and decided to finalize designation
of the zone by March.
On the corporate tax reduction strongly requested by the economic
world, Abe has shown decisiveness to implement it from the next fiscal
year. Accordingly, the economic minister Akira Amari stated it will be
discussed in the Council on Economic and Fiscal Policy. Yet, the
finance minister and Deputy Prime Minister Taro Aso has thrown doubts
on economic impacts of the tax reduction by saying that it will have
nothing to do with 70% of the entire companies.
nothing to do with 70% of the entire companies.
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