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JAPAN'S ECONOMIC COUNCIL DRAWS UP 7-POINT REFORM PLAN.
TOKYO, June 1 Asia Pulse - Japan's Council on Economic and Fiscal Policy has released draft guildelines for a seven-point structural reform program addressing a variety of issues including the rigid budget allocation method.
The guidelines, slated for official release in late June, will serve as the foundation of the government's structural reform plan, in which Prime Minister Junichiro Koizumi has pledged to attack areas that have been strongly guarded by vested interests, such as public works projects.
According to the draft, the seven-point program includes plans to boost local autonomy and privatize public corporations. For the fiscal 2002 budget, it includes a plan to reduce government bond issuance to below 30 trillion yen by cutting back on public works spending and special grants to municipalities, as well as by reforming the social welfare program.
The panel will now work on devising a final version of the guidelines by consulting the pertinent ministries and ruling party members, as well as reviewing public opinion. The guidelines will be reflected in the fiscal 2002 budget.
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Source: HighBeam Research, JAPAN'S ECONOMIC COUNCIL DRAWS UP 7-POINT REFORM PLAN.