The fiscal reform package approved June 3 by the Cabinet is expected to save the nation a substantial amount of money, but whether it will bring real change to Japan's fiscal structure is highly debatable.
Many scholars and economists acknowledge that Prime Minister Ryutaro Hashimoto is determined to push forward drastic reform to restore Japan's fiscal health. However, they contend that the fiscal "structural" reform, which has been the priority out of the prime minister's six reforms, has apparently failed to live up to its name.
Harunori Yamada, a senior staff researcher at Mitsubishi Research Institute, said that political leaders have finally come to recognize the ongoing fiscal problems, noting that is a positive development. However, Yamada said, although Hashimoto has repeatedly emphasized his determination to accomplish reforms with strong "political leadership," such leadership has not produced any clear visions for revamping the nation's fiscal structure.