Measures are needed to lead the economy to a full-fledged recovery while preventing the spread of the novel coronavirus once again.
Prime Minister Yoshihide Suga has instructed his Cabinet to compile a third supplementary budget for fiscal 2020, which includes additional economic stimulus measures. At a Cabinet meeting, the prime minister said emphatically, "The government will bring [the economy] back onto a growth track led by private-sector demand."
Some lawmakers of the ruling parties have called for a supplementary budget of more than 10 trillion yen. However, it is vital to determine effective projects first, rather than prioritizing the amount of the budgetary framework.
As the full-fledged winter season approaches, there is concern about a sudden increase in the number of coronavirus cases. The government should make every possible effort to develop vaccines and strengthen medical systems.
Based on that, it is essential for the government to do its best to shore up the economy.
The unemployment rate in September stood at 3%, lower than that after the 2008 collapse of U.S. investment bank Lehman Brothers, which exceeded 5%.
The government has taken special measures, such as increasing the upper limit of employment adjustment subsidies to help companies pay allowances to workers who have been put on leave. The special measures seem to have brought about a certain effect. To prevent the employment situation from deteriorating, the government should consider extending the special measures that are now set to expire at the end of December.
Airlines and other businesses have started transferring their employees to other companies. The government is considering further expanding the employment adjustment subsidy program, which also includes a subsidy system for such temporary transfers of workers. The government is urged to encourage the effective use of human resources.
There are voices calling for the extension of the government's Go To Travel tourism promotion campaign, which will expire at the end of January next year, to the Golden Week holidays in late April to early May. The campaign is aimed at stimulating tourist demand by subsidizing travel expenses and issuing valuable coupons that can be used for shopping.
Calling for an extension of the campaign period is understandable, but cases of abuse of the campaign have been reported. For example, some people have intentionally canceled travel reservations at the last minute -- after receiving the coupons. It is essential to ferret out any wrongdoing, waste or unfairness.
This time, there has been no discussion of uniform cash benefits to the public. It is also important for the government to gradually shift its emphasis from measures to help the needy to those to promote economic growth.
Due to the coronavirus crisis, teleworking, online business negotiations and online shopping, among other such activities, are expanding. It is urgent to help companies promote information technology, and spread the 5G standard that enables high-speed, large-capacity communications.
The prime minister has set a goal of reducing greenhouse gas emissions to virtually zero by 2050. The government is urged to strongly support technological innovation such as for offshore wind power generation, storage batteries and hydrogen utilization.
Meanwhile, in fiscal 2020, the government has compiled two supplementary budgets, with expenditures exceeding 160 trillion yen. Government bonds worth about 90 trillion yen have been newly issued. It would be a serious situation if the credibility of government bonds, which mean national debts, declines due to reckless issuance. The government must also start debating fiscal reconstruction.
-- The original Japanese article appeared in The Yomiuri Shimbun on Nov. 11, 2020.
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