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Go Finance Reporting Tokyo – Japan is currently facing a tax increase “inevitable” to help offset the cost of elderly people. This condition can result in increased public debt Affairs Sakura.

Japanese Prime Minister Naoto Kan while speaking at the opening session of the court stating that his government was working on drafting a proposal for fundamental reform of social security system which will be submitted end of June.

“Our country faces the need to reform the social security system drastically. This is the social and economic assumptions that are built has changed, “said Kan in Tokyo, as quoted by AFP.

“It’s not inevitable that we’re asking the public to bear the burden to some extent,” he said.

According to Kan, Japan can not survive longer with the financial resources due to growing social security costs to swell. Likewise, the savings in public works and other government projects are judged to be quite helpful.

“The government will reveal the basic policy of reform of social security and tax systems, including the consumption tax of five percent in June,” said Kan.

In June, the government will also continue to make the decision to join the Trans-Pacific trade pact or not. If you continue, Japan must eliminate trade barriers that had been fortified Japanese economy, especially in the agricultural sector.

Previous government’s decision to suspend the Trans-Pacific free trade because of the refusal of the farmers who are concerned about cheap imports from the United States (U.S.) evaluated could threaten the agricultural industry. Critics of the Trans-Pacific believes that the revitalization is needed today.

Japan’s public debt has reached $ 5 trillion, including the cost of welfare and revenue deficit due to the Japanese population is rapidly aging and add further pressure.

So far, the Government Kan finance the fiscal gap by raising debt in the domestic market. About 95 percent of state debt originated from within the country through banks and pension schemes.

Meanwhile, Economy Minister Kaoru Yosano Japan Economic Ministers urged the central bank took action against the deflation that has occurred in 2000 despite a mild scale. (GoFinance)

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