Japan's government has highlighted wage hikes as a cornerstone of its economic growth strategy, according to a draft of its planned basic policy on economy, public finances and reform.

In the draft submitted at a meeting of the Council on Economic and Fiscal Policy on Friday, the government said that the three decades of the country's cost-cutting economy is coming to an end.

Seeing wage hikes as a key part of its growth strategy, the government vowed to realize pay raises that exceed price increases in a stable way.