Departing Finance Minister Sadakazu Tanigaki on Tuesday asked the new administration of Prime Minister Shinzo Abe to show a long-term fiscal reform commitment, which he said is crucial in winning market confidence and keeping interest rates in check.
Speaking at his last news conference since becoming finance minister in September 2003, Tanigaki repeated his belief that ensuring growth and cutting government spending alone are not sufficient to put Japan's debt-ridden finances under control and called for an overhaul of the tax system, including a consumption tax hike from the current 5 percent.
"Winning long-term market confidence over (the nation's) fiscal discipline is important for ensuring economic growth in the future," Tanigaki said.