The government and the ruling bloc held their first meeting Monday aiming to overhaul the tax system and government spending in an effort to shore up public finances.
"The government has succeeded in trimming fiscal spending while achieving economic growth over the past several years. I want the panel to aim at further economic growth by reforming revenues and spending as a package," said Prime Minister Junichiro Koizumi, who attended the meeting.
The outcome of the discussions will serve as an important reference point for the annual economic management and reform policy, scheduled to be adopted by the Cabinet next month.