Prime Minister Shinzo Abe's ruling coalition pledged Wednesday to restore Japan's ailing public finances, reckoning that promoting fiscal rehabilitation is essential to maintain economic growth.
In a final draft of a midterm fiscal reform plan, the Abe administration and the ruling bloc — the Liberal Democratic Party and New Komeito — vowed to place priority on conquering nearly two decades of deflation.
To prevent prices from continuously falling, the ruling coalition promised in the draft to "carry out flexible fiscal policy" if Japan faces a serious economic crisis.