A government panel has approved the basic framework of draft guidelines on economic and fiscal policies that center on Prime Minister Junichiro Koizumi's reform initiatives, including comprehensive reform of the national budget.
Members of the Council on Economic and Fiscal Policy agreed on the framework at their meeting Thursday, although further work on the wording of some items is necessary, such as an overhaul of the social security system, Economic Minister Heizo Takenaka said.
The draft calls for a reduction in the percentage of public investment to gross domestic product over the medium term and a review of the use of special tax revenues earmarked for road construction.