The Liberal Democratic Party said Friday it will put forward a five-year economic reform program in its final draft of policy pledges in anticipation of an early election.
The draft, reworked from the previous version in May, calls for issuing new government bonds dedicated to financing reconstruction from the 2011 earthquake and tsunami, including disaster prevention measures.
While keeping its call for doubling the consumption tax to 10 percent unchanged, as agreed with the ruling Democratic Party of Japan, the LDP pledges to limit the use of those revenues to social security and related programs.
To help restore Japan’s fiscal health, the party will aim for a ¥3 trillion spending cut by reducing funding for households on welfare and curbing civil servant pay.
Along with plans to support small businesses, the party will offer corporate tax exemptions to startup firms for three years, even after they turn profitable.
On other issues, the LDP will call for a new defense law that allows restricted use of the right to collective self-defense. As in its previous draft, the party will continue pushing to revise the Constitution so the Emperor can be called “the head of state.”