(Provisional Translation)

Economic Measures for
Realizing Investment for the Future

August 2, 2016

(Provisional Translation)

(Provisional Translation)

Contents
Chapter 1 Current state of the Economy and Basic Stance behind
Economic Measures..................................................................................... 1
Chapter 2 Measures for Implementation ............................................... 3
I. Accelerating efforts to build a society in which all citizens are
dynamically engaged........................................................................... 3(1) Improving the children care and nursing care environment ........... 3(2) Enhancement of supports for youths and promotion of theempowerment of women................................................................. 6(3) Boosts in both gross income and consumption across the entire
society ............................................................................................. 7
II. 21st-century-type infrastructure developments .................................. 8(1) Infrastructure developments toward the era of 40 million foreign
tourists ............................................................................................. 8(2) Promoting exports of agricultural, forestry, and fishery products,
and enhancing the competitiveness of agriculture, forestry, andfishery.............................................................................................. 9(3) Acceleration of infra-developments such as the opening of the
Linear Chuo Shinkansen line and the Planned Shinkansen lines . 11
(4) Support for overseas expansion of infrastructure business etc. .... 12(5) Acceleration of efforts toward productivity improvement ........... 12
III. Response to risk such as uncertainly due to UK’s exit from the EU
and support for SMEs and microenterprises as well as local
communities ...................................................................................... 14(1) Financing support of SMEs and microenterprises ........................ 14(2) Support for strengthening the management power and improving
productivity of SMEs and microenterprises ................................. 14(3) Promotion of regional reinvigoration ........................................... 16(4) Responding to risks ....................................................................... 17
IV. Reconstruction from the 2016 Kumamoto Earthquake and the Great
East Japan Earthquake, safety and security, and disaster prevention17

(Provisional Translation)(1) Recovery and reconstruction from the 2016 Kumamoto
Earthquake..................................................................................... 18(2) Accelerate reconstruction from the Great East Japan Earthquake 18(3) Measures to reinforce disaster response and respond to aging
infrastructure ................................................................................. 19(4) Ensuring safety and security ......................................................... 19
V. Promoting restructuring to strengthen a virtuous cycle of growth anddistribution ........................................................................................ 20(1) Promoting working-style reform................................................... 20(2) Minimum wage ............................................................................. 21(3) Monetary policy ............................................................................ 21(4) Promoting other structural reforms ............................................... 21
Chapter 3 Main concrete measures for each item............................... 23
Chapter 4 Size and economic impact of included measures ............. 42

(Provisional Translation)

Economic Measures for
Realizing Investment for the Future
Chapter 1 Current state of the Economy and Basic
Stance behind Economic Measures
With respect to the current state of Japanese economy, as structural factors
such as the declining birthrate and aging population as well as slump in
potential growth have progressed, despite improvement of employment andincome situation, there is a lack of strength in private consumption andbusiness investments. Also, risks of declining demand of the global economy
and slowdown of global economic growth are concerned due to the sluggish
emerging market economies and the outcome of the referendum on the UK’s
membership of the EU.
Abenomics, despite bringing about clear results such as improvement of
employment and income situation, is still at about the halfway point. In orderto overcome long lasting deflation completely, and to achieve medium- tolong-term economic growth, over 2% in real GDP and 3% in nominal GDP,
the government must pave the way for steady economic growth, maximizing
the escape velocity from deflation. The government will promote structuralreforms for raising potential growth to cope with aging society as well as
support domestic demand.
At the recent Ise-Shima Summit, the G7 nations shared their strong concerns,
and reached an agreement on mobilizing all the policies to cope with global
economic risks. As the presidency of the summit who compiled thisagreement, in light of the G7 leaders' declaration, Japan will further
accelerate Abenomics by mobilizing monetary policy, fiscal policy, andstructural reforms in cooperation with the Bank of Japan.
To achieve this, the government will implement comprehensive reforms ofindustrial structure, working style, labor market, and human resources
development. The government will also accelerate the implementation of
structural reforms, such as social security reforms, according to the reform
progress schedule 1 . Furthermore, the government decided to implement
1

Roadmap of the Reform for the Economic and Fiscal Revitalization Plan (Committee
on Promoting Both Economic and Fiscal Reform Simultaneously, on April 28, 2016)1

(Provisional Translation)

comprehensive and bold economic measures for accelerating investment for
the future.
This economic measures focus on policies that will lead to sustained
economic growth led by private-sector demand and to steady realization ofa society in which all citizens are dynamically engaged, beyond short-term
demand stimulus.
The future is in our hands, and we can create our own bright future. Thiseconomic measures for realizing investment for the future will allow us to
get a jump start in achieving that.

2

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Chapter 2 Measures for Implementation
Based on the basic stance described in Chapter 1, this economic measures
will securely support domestic demand. Specifically, the government willplace a priority on: 1) accelerating efforts to build a society in which all
citizens are dynamically engaged; 2) 21st-century-type infrastructuredevelopments; 3) implementing measures against risks such as the lack ofstability resulting from Brexit as well as measures for supporting small andmedium-sized businesses, owners of small businesses, and local
communities; 4) reconstruction from the 2016 Kumamoto Earthquake and
the Great East Japan Earthquake, safety and security, and disaster prevention.
In doing so, the government will observe firmly the goal for fiscal
consolidation by FY2020.

I.

Accelerating efforts to build a Society in which all citizens
are dynamically engaged

First comes a society in which all citizens are dynamically engaged. The
government have already started building it and will accelerate the engine
for implementing measures. This is how Japan will turn into a place where
we all feel that we can pursue our dreams, improve our skills, have a senseof belonging and work hard.
To achieve this the government will carry out measures that will accelerate
the implementation of Plan for Dynamic Engagement of All Citizens 2, while
attempting to make use of the fruits of Abenomics.

(1) Improving the children care and nursing care environment
In an effort to eliminate childcare waiting lists, the government will promote
providing childcare arrangements. The government will also prepare nursing
care arrangements for 500,000 people earlier than planned aiming to reduce
the number of people leaving their jobs to take care of their family member
to zero. The government will implement measures for improving working
conditions in an effort to secure human resources who provide the necessary
childcare and nursing care services. The government will ensure that these2

Japan’s Plan for Dynamic Engagement of All Citizens (decided by the Cabinet on June2, 2016)3

(Provisional Translation)measures are implemented by providing a budget for the necessary measuresin the FY2017 budget, in addition to the FY2016 supplementary budget.
1) Providing childcare and nursing care arrangements
As part of the Urgent Policies to Realize a Society in Which All Citizens
are Dynamically Engaged 3, which was compiled at the end of last year,
the decision was reached to raise additional childcare arrangements to
500,000 by the end of FY2017 and nursing care arrangements to over
500,000 by the start of the 2020s. The government will provide a budget
for the measures in the FY2017 budget, in addition to the FY2016
supplementary budget, and will implement the measures continuously.
2) Improving working conditions for childcare providers
The government will implement a pay rise equivalent to 2% for the
FY2017 budget. In addition, childcare providers with sufficient skills andexperience will be provided with a raise of about 40,000 yen in an effort
to eliminate the gap in wages between female workers across allindustries. The government will make budgetary provisions for thesemeasures in the FY2017 budget and will implement the measurescontinuously. Moreover, wage gaps between male and female workers
across all industries will be reduced in the process of establishing the Act
to Advance Women’s Success in Their Working Life4 as well as carrying
our efforts aimed at equal pay for equal work. The government will makefurther improvements to working conditions for childcare providers if
the need arises.
3) Improving working conditions for nursing care providers
With respect to working conditions for nursing care providers, thegovernment will build a career development scheme, within the Nursing
Care Insurance System, and improve their wages by 10,000 yen permonth on average. The measures will be implemented starting in FY2017.
The government will make budgetary provisions for these measures in
the FY2017 budget and will implement the measures continuously.
Furthermore, rather than waiting for the revision to the system fornursing-care benefits, which will take place in FY2018, the government
will implement the necessary measures (such as special increases to the3

4

Urgent Policies to Realize a Society in Which All Citizens are Dynamically Engaged-Toward a Positive Cycle of Growth and Distribution- (Council of Realizing a Society
in Which All Citizens are Dynamically Engaged, November 26, 2015)
Act to Advance Women’s Success in Their Working Life (Japanese Law No. 64, 2015)

4

(Provisional Translation)

Fiscal Stability Fund in an effort avoid raising insurance costs) inadvance starting in FY2017 to ensure the thorough implementation of
the measures. As for working conditions for nursing care providers for
persons with disabilities, the government will implement measures basedon the same line of thinking as the measures for nursing care providers.
4) Improving measures for securing a broad range of human resources
providing childcare and nursing care services
The government will improve measures for helping childcare andnursing care providers find employment once again after leaving theirjobs, through loan programs with repayment exemptions. In addition, as
measures for improving the work environment, the government will
make improvements to the support system for assistant childcare
providers in the workplace as well as create a support system forchildcare providers who have preschool age children.
5) Reducing the burden on childcare and nursing care providers andimproving productivity
In an effort to reduce the burden on childcare and nursing care providers
as well as improve productivity, the government will promote theadoption of ICT and robots. In addition, in an effort to allow nursing careproviders to spend more time on actual nursing care, their primary duty,
the government will reduce the amount of paperwork required bygovernments by half by the beginning of the 2020s. As for childcare, thegovernment will also promote efforts to streamline paperwork, such as
childcare records and applications for administrative cost subsidies. The
government will also eliminate inconsistencies between different
municipalities. In addition, the government will also support business
operators that provide an environment for balancing nursing with jobs.
6) Reassessing the employment insurance system
In light of the steady improvement of the job climate, a result of theachievements of Abenomics, among other reasons, the government willconsider the necessary measures such as temporary reduction of the costof employment insurance as well as the level of public funding, and comeup with a concrete plan, which will be implemented starting in FY2017.
7) Extending the length of childcare leave and other measures
To allow men as well as women to balance work and childcare, thegovernment will promote efforts to improve childcare centers as well as

5

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consider necessary measures for creating a balance between the two
including extending the length of childcare leave for those who areapproved as needing the extension to continue working, etc., and comeup with a concrete plan, which will be implemented in FY2017.
8) Providing facilities at schools
The government will create a safe and comfortable learning environment
at schools, which serves as evacuation areas in the event of a disaster, by
providing facilities, beginning with those for making schools resistantagainst earthquakes and aging.
9) Utilization of the Career Development Grant
In preparation for the expanded eligibility for employees’ healthinsurance, which will take place in October 2016, the government will
engage in efforts to utilize the Career Development Grant, which assists
part-time workers in receiving raises or working longer hours.
Others(2) Enhancement of supports for youths and promotion of theempowerment of women
It is important not to make inequalities descendent. For this reason, the roleof education is important, and the government will enhance the scholarshipsystem. The government will also accelerate the process of building a society
where every single woman can play an active role according to her own will.
1) As for the scholarship system under which students are exempted fromhaving to repay the scholarship amount, the government will reach aconclusion over its contents in the course of the FY2017 budget-making
process, and will accordingly realize the system.
2) As for interest-free scholarships, the government will promptly enable
students who are qualified to receive interest-free scholarships which
remain not awarded yet to receive them without omission. Furthermore,by virtually removing scholastic requirements imposed on children from
low-income families effective from students newly entering higher
education in FY2017, the government will enable all children who needto receive interest-free scholarships to do so.
6

(Provisional Translation)3) The government will implement leadership training programs for women
who are candidates for executive positions, and will develop humanresources who will lead corporate management in the future.
4) The government will work on measures to enhance supports of marriage,
realize regional cohesive societies, and promote the empowerment of
women at an accelerated pace.
Others(3) Boosts in both gross income and consumption across theentire society
In order to boost sluggish consumption and solidly expand domestic demand,
it is important to boost the level of gross income of the entire society. To thisend, the government will take the following measures:
1) Promoting working-style reform (to be discussed later)
2) Shortening the pensionable period
The problem of receiving no pension is an urgent issue, and thegovernment will submit necessary bills which will enable shortening of
the pensionable period from 25 years to 10 years to be effected withcertainty during FY2017.
3) Effecting a simple benefits package
The government will effect a simple benefits package in a lump sum forthe two and half years ending September 2019. Effective from October
2019, the reduced tax rate will be introduced as a low-income measureor regressive measure after the consumption tax hike. Accordingly, thesimple benefits package will come to an end.
4) Reviewing the employment insurance system [re-posted]
5) Revitalizing markets for transaction of existing houses and reform
The government will set up new measures to help youths acquire existinghouses, for example, by promoting both inspections of building
conditions and sign-up of a defects insurance policy.
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The government will also set up new measures to support renovation orreconstruction that will enhance the energy-saving performance while
also ensuring quake resistance.
The government will promote the spread of new residential housing thatexcels in durability, environmental performance, quake resistance, etc.
In that regard, the government will support three generations of a family
to realize their intention of living under one roof.
6) Carrying out a national campaign to vitalize consumer demand incooperation with the industry circle and communities.
7) Encouraging the public to build their assets in a stable manner throughdiversified investment.
In order to boost the flow “from savings to asset-building” in family
finances, the government will improve and familiarize people with the
Nippon Individual Saving Account (NISA) for the purpose of promoting
the reserve and diversified investment starting from petty sums, and willfamiliarize financial institutions with customer-first behaviors.
OthersII. 21st-century-type infrastructure developments
The government will make 21st-century-type infrastructure developments.
Specifically, the government will improve infrastructures both in order tostimulate tourism and in order to promote exports of agricultural, forestry,
and fishery products and enhance the competitiveness of agriculture, forestry,
and fishery. The government will also bring forward the plan of the Linear
Chuo Shinkansen Line and will accelerate construction of the planned
Shinkansen lines in accordance with the Ordinance for Enforcement of The
Nationwide Shinkansen Railway Development Act. The government willboldly make investments for growth and construct the foundation for midand long-term growth.

(1) Infrastructure developments toward the era of 40 million
foreign tourists
Japan has various attractions that can be conveyed not only across the8(Provisional Translation)

country but also around the world. With this potential in mind, tourism is amain pillar of Japan’s growth strategy as well as a decisive factor for
facilitating regional reinvigoration.
1) Toward the goals of achieving 40 million foreign tourists to visit Japan
in 2020 and 60 million of them in 2030, the government will formulate
a “Infrastructure Improvement Program for tourism” (tentative name),
assumedly by the end of the year, in order to proactively improve both
hardware and software infrastructures in a consistent and planned manner.
• Improving ports and harbors to receive large-sized cruise ships;
strengthening functions of capital-area airports and those of regional
airports, such as improving aircraft parking aprons; proactively
making public facilities, such as railway stations and bus terminals,
barrier-free; improving and refining tourism-hub information centersand exchange centers; and others (in terms of hardware)• Promoting the construction of Japanese-style inns and hotels by easing
the floor-area ratio restrictions; enhancing the convenience of Wi-Fi;
improving the credit-card transactions environment for foreign
visitors to Japan; improving the multi-language environment on board
trains and buses; driving the urgent promotion for foreign visitors toJapan in order to attract tourists to regions; promoting the Cool Japan
initiatives; improving CIQ systems; and others (in terms of software)
2) Working on the preparation of hosting the Tokyo Olympic andParalympic Games in 2020
In order to host the Tokyo Olympic and Paralympic Games in 2020
successfully, the government will improve relevant facilities andproactively strengthen relevant functions so as to expand the processing
capacity of capital-area airports.
Others(2) Promoting exports of agricultural, forestry, and fisheryproducts, and enhancing the competitiveness of agriculture,
forestry, and fishery
Agriculture is the national foundation and a source of attractiveness that
regions are proud of. In anticipation of effectuation of the Trans-PacificPartnership (TPP) Agreement, the government will proactively improve both9

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software and hardware infrastructures that will form the foundation to realize“proactive agriculture, forestry, and fishery” as embodied in enhancing
competitiveness as well as export promotion for agricultural, forestry, andfishery products and foodstuffs.
1) Promoting exports of agricultural, forestry, and fishery products
Toward the goal of achieving one-trillion yen in the total export amountof agricultural, forestry, and fishery products and foodstuffs in 2019, thegovernment will formulate an “Infrastructure Improvement Program for
Agriculture, Forestry, and Fishery Products” (tentative name), assumedlyby the end of the year, in order to proactively improve both hardware andsoftware infrastructures, which are necessary for the implementation of
the “Strategy to Strengthen the Export Power of Agriculture, Forestry,
and Fishery,” 5 in a consistent and planned manner.
• Improving export bases and export-handling type facilities (including
food processing facilities and wholesale markets); and others (in termsof hardware)• Reforming export-related procedures; strengthening the support
system for business operators; enhancing supports from funds that
intend to make agriculture, forestry, and fishery a growth industry; andothers (in terms of software)2) Enhancing the competitiveness of agriculture, forestry, and fishery(i) In order to enhance the competitiveness of agriculture, forestry, andfishery, the government will accelerate infrastructure improvementswith the aims of making a breakthrough innovation and raising thelevel of agricultural income in hilly and mountainous areas.
Besides, based on the Comprehensive TPP-related Policy
Framework 6 , the government will steadily implement the relevantmeasures, develop human resources who will lead the next
generation, promote the production area innovation initiatives, andstrengthen the overall earning power of the livestock/dairy industry.
• Promoting the large compartmentalization/general use of farmlands; improving woodlands; improving fishing ports; and others(in terms of hardware)
5

6Strategy to Strengthen the Export Power of Agriculture, Forestry, and Fishery(Headquarters of Agriculture, Forestry and Fishery and Vitalization of the Local Areas,
May 19, 2016)
Comprehensive TPP-related Policy Framework (Headquarters of Comprehensive TPP
Measures, November 25, 2015)

10

(Provisional Translation)• Strategically developing technologies; promoting higher earnings
in hilly and mountainous areas; deploying agricultural
management schools in regions; raising the earning power of
paddy agriculture; strengthening the competitiveness of
plywood/lumber sawing; converting to an operational frameworkwith higher earning power; and others (in terms of software)(ii) Moreover, in order to raise the income of farmers, it is important to
reduce production costs and ensure profitable sales terms, and thus
the government will put all our efforts into reducing production
material prices; reforming the distributive processing structure;reviewing the land improvement system; and introducing labelingrequirements of ingredients/place of origin. To this end, thegovernment will formulate a “Competitiveness Enhancement
Program for Agriculture, Forestry, and Fishery” (tentative name)assumedly by the end of the year.
Others(3) Acceleration of infra-developments such as the opening of
the Linear Chuo Shinkansen line and the Planned Shinkansen
lines
The government will improve environments where fruits of growth will
prevail across the country by integrating all regions into a single nationwide
economic zone. To this end, the government will construct corridors forfacilitating regional reinvigoration that will connect the regions one after
another while big cities will serve as the respective hubs.
1) Improving infrastructures by utilizing the low-interest situation
By taking advantage of the current low-interest situation, the government
will proactively utilize/wield the fiscal investment and loan techniques
funded by FILP bonds. In doing so, the government will bring forward
the opening of the entire Linear Chuo Shinkansen line by up to eight
years, and will also accelerate the construction of the planned Shinkansen
lines.
2) Improving infrastructures that will form the foundation for growth• The government will proactively enhance logistics networks such as
metropolitan area beltways and will promote measures to address

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(Provisional Translation)

traffic congestion or to tackle problems such as the one with any
railway crossing whose gates always seem to be closed.
• The government will proactively improve international strategic ports
and harbors in response to the trend toward larger-sized ships, while
also promoting private-sector urban development projects.
• In regions that face challenges such as the diffusion of urban areas, thegovernment will promote measures such as consolidating functions ina base district and re-constructing regional public traffics so as to form
the Compact Plus Network.
Others(4) Support for overseas expansion of infrastructure business etc.
1) Support for overseas expansion of infrastructure business
Based on the objective of providing approx. 200 billion dollars to theinfrastructure sector in the coming five years in the “High Quality
Infrastructure Export Initiative” 7, the government will support Japanesecompanies’ overseas infrastructure business expansion through making
positive use and reinforcing financial grounds of the Japan Bank forInternational Cooperation (JBIC), Japan International Cooperation
Agency (JICA), Japan Oil, Gas and Metals National Corporation(JOGMEC), Nippon Export and Investment Insurance (NEXI), and otherorganizations concerned. The government will also strengthen externalaffairs.
2) Promotion of Cool Japan strategy
The government will promote the development of Cool Japan throughexport of our country’s attractive contents, traditional culture, domestic
food and liquor, etc. as well as cultural creation and overseas public
relations.

(5) Acceleration of efforts toward productivity improvement
Backed by the Fourth Industrial Revolution involving IoT and artificial
intelligence (AI), the government will promote innovation, research and
7High Quality Infrastructure Export Initiative (Council of Strategy for Economic
Cooperation on Infrastructure, May 23, 2016)

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(Provisional Translation)

development, and intellectual property strategy to boost potential growthability through productivity improvement. The government will also expand
a free and fair economy to the world by promoting TPP, Japan-EU EPA, etc.
1) Fourth Industrial Revolution
The government will create IoT businesses. The government willdevelop and improve AI-related research centers to promote societal
implementation. The government will also promote introduction ofrobots for improvement of care work environment, etc.
2) Promotion of innovation
The government will promote science and technology innovation by: a)enhancing basic research and encouraging technology development inmaterials development, the space industry, the energy industry,
manufacturing, agriculture, forestry and fisheries, etc., b) reinforcing
government-industry-academia collaboration leading to regional
revitalization, etc., and c) developing and improving research facilities
and equipment of universities or national research and development
corporations, which serve as a foundation for those above while thegovernment strives to develop human resources that can contribute tocreation of innovation.
3) Promotion of research and development of medicinal products andmedicalequipment
throughgovernment-industry-academia
collaboration
Aiming at creation of innovative new drugs and medical equipment, thegovernment will improve the environment for research and development
through government-industry-academia collaboration. The government
will also promote digitalization and ICT use in medicine.
4) Efforts toward early entry into force of TPP Agreement and earlyagreement of Japan-EU EPA
In order to maintain and strengthen the free-trade system, the government
will advance negotiations for economic partnerships strategically with asense of urgency. Specifically, the government will make efforts at early
entry into force of the Trans-Pacific Partnership (TPP) Agreement whileaiming at broad agreement of Japan-EU EPA as early as possible within
this year.
Others13

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III. Response to risk such as uncertainly due to UK’s exitfrom the EU and support for SMEs and microenterprises
as well as local communities
Against risk such as the instability and uncertainty accompanying the UK
voting to leave the EU, and the economic trends of emerging nations, as well
as for productivity improvement, the government will enhance support ofdomestic SMEs and microenterprises.
With the vision of “letting local economies take the lead, aiming for world
outreach,” the government will promote initiatives toward full-fledged
development of facilitating regional reinvigoration to summon communities’
energies.

(1) Financing support of SMEs and microenterprises
The government will provide support in financing, etc. for SMEs andmicroenterprises. The government will also support companies making
efforts at overseas business expansion.
1) The government will cut interest rates of the safety-net loan system for
SMEs and microenterprises (at Japan Finance Corporation and Shoko
Chukin Bank), create a financing system for business operators whoseplans to strengthen their management power are certified, and give aguarantee in refinancing of an existing guaranteed loan.
2) The government will support overseas business expansion by utilizing
JBIC’s loan facility to support overseas development.
Others(2) Support for strengthening the management power andimproving productivity of SMEs and microenterprises
The government will enhance support for strengthening the management
power and improving productivity of SMEs and microenterprises. The

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government will also take action to improve an environment for increase in
the minimum wage.
1) The government will provide support for innovative development in
manufacturing, commerce, and the service industry, as well as support
for IT introduction, overseas business expansion, and improvement in
the attractiveness of shopping malls, to improve the productivity of
SMEs and microenterprises. The government will also facilitate changeof business by SMEs.
2) For improving the environment for increase in the minimum wage, thegovernment will promote and enhance support measures for SMEs andmicroenterprises to strengthen the management power and improve
productivity. The government will also realize time-limited reduction of
employment insurance premiums paid by business owners from
FY2017 after required consideration and making a definite plan.
3) As for subcontracts, in order to mend problems in business practices
including payment by bill and mold storage, which came from the past
research, the government will strengthen application of the
Antimonopoly Act and other related laws such as enhancement of theexamples of violation in the application standards of the Subcontract
Act 8 while enhancing and improving subcontract guidelines according
to the type of business. Through these measures, the government will
improve business terms for SMEs including subcontract enterprises.
4) Aiming at sustainable management meeting changes of local demand,
the government will support small businesses’ efforts at market
development.
5) In order to support improvement in corporate productivity, thegovernment will promote initiatives across the government such as: a)utilization of “local benchmarks,” b) promotion of debt waiver by public
and private finance-related institutions, c) strengthening local financial
functions, and d) promotion of use of the Regional Economy Vitalization
Corporation of Japan (REVIC).
Others8

Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors (Japan
Law No.120 of year 1956)

15

(Provisional Translation)(3) Promotion of Regional Reinvigoration
As for facilitating regional reinvigoration in a full-fledged development
phase, it is necessary to promote local governments’ initiatives steadily andpowerfully and broaden the base of initiatives. Therefore, the government
will promote efforts to facilitate regional reinvigoration originated in smallbases, focusing on three aspects: information, human resources, and finance.
The government will also create employment opportunities by establishingor developing industries of high value by utilizing the characteristics of local
communities. In addition, the government will execute the budget smoothly
and appropriately taking utilization of local companies into consideration.
1) Creation of a subsidy for promotion of regional reinvigoration, aiming at
investment in the future
The government will encourage local governments’ efforts to improve
facilities, etc. in voluntary and independent projects to develop regional
centers, etc., based on regional comprehensive strategies while
respecting local situations.
2) Development and improvement of life-connected infrastructures
The government will promote barrier-free environments to develop
communities where the elderly and people with disabilities can live atease while promoting construction of overpasses for railways andinstallation of platform screen doors. The government will also promote
development and improvement of life-connected infrastructures such as
water and sewage works while promoting removal of utility poles,
measures for traffic safety, etc.
3) Positive use of PPP/PFIThe government will make positive use of PPP/PFI including concession
contracts while utilizing Private Finance Initiative Promotion
Corporation of Japan as a method for infrastructure development andimprovement.
4) Promotion of disadvantaged areas
The government will vitalize disadvantaged areas such as the Amami
Islands, Ogasawara Islands, and remote islands.

16

(Provisional Translation)5) Local revitalization by vacant house renovation, etc.
The government will support renovation of vacant houses to use them asstay and experience facilities or exchange and exhibition facilities toencourage local revitalization.
6) Securing and fostering leading workers in the construction industry
Through educational training and workshops as well as improvement of
the construction industry’s image, the government will secure and foster
human resources with excellent construction skills from home andabroad.
7) Utilization of the National Strategic Special Zones
Defining the period through the end of next fiscal year as a “period of
intensive reform,” the government will implement the reform of as-yet
unreformed areas of the bedrock of Japan’s regulatory regime in thepriority areas, and promote nationwide expansion of the special zones’
achievements with powerful economic effects and no particular negative
effect by starting with what is needed.
Others(4) Responding to risks
In order to ensure the stability of financial functions, the government will
extend the terms of recapitalization systems based on the Act on Special
Measures for Strengthening Financial Functions 9.
OthersIV. Reconstruction from the 2016 Kumamoto Earthquake
and the Great East Japan Earthquake, safety andsecurity, and disaster prevention
In addition to further strengthening efforts to create a future for the area hit
by the 2016 Kumamoto Earthquake and to rebuild after the disaster, the9Act on Special Measures for Strengthening Financial Functions (Japan Law No.128 ofyear 2004)

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government will accelerate reconstruction work related to the Great East
Japan Earthquake. Furthermore, the government will move forward withefforts to build a country resilient to earthquakes, torrential rains, heavy snow,
and natural disasters, promote measures to prevent disasters, maintain order,develop responses to the harsh security environment, and ensure the safety
and sense of security of Japanese.

(1) Recovery and reconstruction from the 2016 Kumamoto
Earthquake
Many victims of the earthquake have no choice but to live in shelters andemergency temporary housing, and the government will not only move
forward with work to look after victims of the disaster, support counseling,etc., but also accelerate various other endeavors, including the constructionof public housing for the disaster victims so that they can quickly move to
new housing where they can regain a sense of security. The government will
also promote recovery efforts related to roads, facilities, etc., and provide
meticulous support for people to regain their livelihood and for industries torebuild. Furthermore, in regard to the various projects that local governments
impacted by the disaster are undertaking to respond to conditions in theirlocal communities, the government will support the creation of areconstruction fund so that they can flexibly respond without being
constrained by single-year budgets.

(2) Accelerate reconstruction from the Great East Japan
Earthquake
Japan cannot recover unless the Tohoku region rebuilds. This fiscal year, thefirst year of a five-year reconstruction and reinvigoration period, the goal isto achieve reconstruction that can serve as a model for regional
reinvigoration and lead to victims of the disaster becoming independent,
which will be based on the Basic Policy On Reconstruction Following theGreat East Japan Earthquake During the Reconstruction and Reinvigoration
Period10. In addition to accelerating work on various fronts, including theconstruction of specially designated “reconstruction roads” and“reconstruction-support” roads and ports that support reconstruction, the10

Basic Policy On Reconstruction Following the Great East Japan Earthquake During
the Reconstruction and Reinvigoration Period (decided by the Cabinet on March 11,
2016)

18

(Provisional Translation)

government will further more forward with efforts to rebuild tourism in
Tohoku. As for areas impacted by the nuclear accident, the government will
work to respond to the accident (this includes moving contaminated soil andother items to interim storage facilities and ensuring surface decontamination
work based on the decontamination plan is completed by March 2017, etc.),
strive to relaunch projects and implement other measures related to urban
revitalization, and build a new Tohoku different than the one before thedisaster.

(3) Measures to reinforce disaster response and respond to aging
infrastructure
The government will promote various efforts, including measures to preventor mitigate damage from disasters, in order to prepare for disasters thatfrequently occur in Japan, a country often hit by disasters. In particular, thegovernment will not only expand projects to build communication systems
to disseminate disaster prevention information, etc., and projects that havebeen successful in terms of emergency disaster prevention and damage
mitigation, but also strengthen the disaster prevention functions ofgovernment offices, which are used as designated shelters and disaster
response bases. Furthermore, the government will reinforce numerous typesof measures, including those to combat aging infrastructure so that it cancontinue to fulfill its role in the future.

(4) Ensuring safety and security
In order to ensure the safety and security of Japanese citizens, thegovernment will not only strengthen our ability to collect information andmanage crises in case of terrorist attacks and ensure order but also respondto a security environment that is growing more perilous by strengthening thesystem to manage the Self Defense Forces. As Japanese companies launch
operations overseas, the government will also work to ensure the safety andsecurity of Japanese overseas. Furthermore, the government will pay close
attention to international trends. In addition, the government will promote
efforts to reinforce the crisis management system of various entities,
including the Prime Minister's Official Residence, cyber security measures,and international infectious disease countermeasures, to promptly provide
Japanese citizens with accurate information, and to ensure their safety andsecurity in daily life.

19

(Provisional Translation)

V. Promoting restructuring to strengthen a virtuous cycle ofgrowth and distribution(1) Promoting working-style reform
The key to achieving the dynamic engagement of all citizens is atransformation in society that makes it possible for people to work in diverse
ways. The biggest challenge is working-style reform. Therefore, thegovernment are moving forward with efforts to achieve equal pay for equal
work, to resolve the problem of long working hours, and to reform the laborsystem and are determined to eliminate the word “non-regular” from Japan.
1) The government will formulate guidelines that provide cases ofdifferences in treatment that are reasonable and those that are not in orderto properly implement the Labor Contract Act, 11 Part-Time Workers
Act, 12 and Dispatched Workers Act.13
2) While fully keeping in mind Japan’s employment practices, thegovernment will resolutely move forward with preparations to amend
laws in order to achieve equal pay for equal work.
3) As for resolving the problem of long work hours, the government will
launch a re-examination of the ideal form of overtime work regulations
for so-called article 36 agreements, which permit unlimited overtime
work if agreed to by labor and management.
4) In addition to promoting telecommuting, the government will review
various acts including the Act on Promotion of Women's Participation
and Advancement in the Workplace and Next-Generation Children Act14
with the goal of resolving the problem of long work hours for young
people.
11 Labor Contract Act (Japan Law No. 128 of year 2007)
12 Act on Improvement, etc. of Employment Management for Part-Time Workers(Japan Law No.76 of year 1993)
13 Act for Securing the Proper Operation of Worker Dispatching Undertakings andImproved Working Conditions for Dispatched Workers (Japan Law No. 88 of year
1985)
14 Act on Advancement of Measures to Support Raising Next-Generation Children(Japan Law No.120 of year 2003)

20

(Provisional Translation)5) In order to promote the employment of the elderly, the government will
not only move forward with aid for rehiring the elderly but also call on
companies and other entities to extend the age that employees can work
beyond 65 and to extend the retirement age to 65 and provide support toentities that do so, so that more companies will independently take such
steps.
6) As for making use of non-Japanese workers, the government will focus
on fields that truly need such workers and move forward with acomprehensive and detailed examination of the best way to bring in nonJapanese workers in order to secure the sustainable potential of Japan’s
economic and social infrastructure.

(2) Minimum wage
The Central Minimum Wage Council set a target for an increase in theminimum wage by region for this year of 24 yen (national weighted average),
6 yen more than for the previous year, and this translates into a 3% increase,substantially greater than the 2.3% increase for last year. For all prefectures
throughout Japan, this is an increase of more than 20 yen/hour. It is expectedthat this will stimulate consumer spending, raise the standard of living, andcontribute to the dynamic engagement of all citizens.
Furthermore, in order to create an environment conductive to a higher
minimum wage, the government will promote and expand support measures
for small and medium-size enterprises so that they can strengthen theirbusinesses and increase productivity.
The government will consider the necessary measures about temporary
reduction of the cost of employment insurance paid by employers, and comeup with a concrete plan, which will be implemented starting in FY2017.

(3) Monetary policy
The Government expects the Bank of Japan to achieve the price stability
target of two percent in light of economic activity and prices.

(4) Promoting other structural reforms
The government will accelerate system and regulatory reforms included inpolicies such as the Japan Revitalization Strategy. The government will also21

(Provisional Translation)

steadily implement structural reforms to social security, local administrationand finances, and the tax system in line with the reform schedule andEconomic and Fiscal Revitalization Action Program15.

15 The Economic and Fiscal Revitalization Action Program: Reform with Innovation
Utilizing “Visualization” and “Wise Spending”(December 24, 2015, Council on
Economic and Fiscal Policy)

22

(Provisional Translation)

Chapter 3 Main concrete measures for each item
I.

Accelerating efforts to build a society in which all citizens
are dynamically engaged(1) Improving the childcare and nursing care environment• Promote the construction of childcare facilities such as preschools(including parts of kindergarten-type certified kodomo-en that function
as preschools) (Ministry of Health, Labour and Welfare [MHLW])• Develop an environment conductive for facilities such as certified
kodomo-en (Ministry of Education, Culture, Sports, Science andTechnology [MEXT])• Improve working conditions for childcare providers and nursing careproviders (Cabinet Office [CAO], MHLW)• Expand programs that provide loans for attending childcare provider
training programs, etc. (MHLW)• Increase special contributions to fiscal stability funds (MHLW)• Expand programs that lend funds for reemployment reserves for
programs that provide loans to attend nursing care provider training
programs, etc. (MHLW)• Launch a program that supports the introduction of nursing care robots
and conduct research to verify the benefits from introducing such
equipment (MHLW)• Review the employment insurance system (MHLW)• Improve the environment for school facilities, etc. (MEXT)• Launch programs to reinforce the ICT environment to ensure
information security at schools (MEXT)• Develop facilities for promoting integrated after-school kids’ classes(MEXT)• Reinforce efforts to prevent child abuse, etc. (MHLW)• Promote the construction of infrastructure for welfare services thattarget people with disabilities (MHLW)• Launch programs to promote the use of public individual authentication
services (provide one-stop service to support childcare that is linked to
the My Number portal) (Ministry of Internal Affairs andCommunication [MIC])• Introduce programs to undertake urban development that supports
childcare and the elderly making use of ICT (promote telecommuting)23

(Provisional Translation)(MIC)• Develop medical equipment, etc., to strengthen pediatric and perinatal
care (MHLW)• Support efforts to prevent nursing care providers from leaving their jobs
(Subsidy to Support Efforts to Prevent Nursing Care Providers from
Leaving Their Jobs [tentative name]) (MHLW)• Create new subsidies for business owners who employ livelihood
protection recipients, etc. (MHLW)• Examine measures to prevent downward adjustments in thegovernment’s portion of national health care payments and reach aconclusion by the end of the year taking into consideration the work of
the investigative committee on issues such as ideal form of thehealthcare system for children (MHLW)Others(2) Enhancement of supports for youths and promotion of theempowerment of women• Establish scholarships that do not need to be repaid (MEXT)• Increase interest-free student loans (MEXT)• Review the lower limit on interest on FILP loans (review the interest
rate on interest-bearing student loans [Japan Student Services
Organization], etc.) (Ministry of Finance [MOF])• Develop a system to introduce scholarships whose monthly repayment
amount is linked to income (MEXT)• Launch programs to promote the training of female leaders (Ministry of
Economy, Trade and Industry [METI])• Expand support for marriage, including subsidies that promote efforts
focused on local measures to prevent the decline in the number ofchildren (CAO)• Introduce subsidies to support the future of local children (CAO)• Introduce subsidies to promote the empowerment of women in local
communities (CAO)• Increase information included on items such as My Number cards in
response to various developments, including efforts to promote theempowerment of women (MIC)• Promote work to expand and strengthen efforts to secure legal
professionals, including reducing the financial and time burden of
graduate work in the field of law and providing financial assistance to24(Provisional Translation)

students of the Judicial Research and Training Institute. (Ministry ofJustice [MOJ], Supreme Court, and MEXT)
Others(3) Boosts in both gross income and consumption across the entire
society• Reduce the length of time it takes to become eligible for an employees’
pension (MHLW)• Promptly reform the employees’ pension system, including expanding
pension eligibility to employees of small and medium-size enterprises
working reduced hours (MHLW)• Simplified Benefits (MHLW)• Review the employment insurance system (MHLW) (listed twice)• Launch a program to accelerate the spread of net-zero energy houses(ZEH) (METI)• Invigorate the market for existing homes and home renovations(Ministry of Land, Infrastructure, Transport and Tourism [MLIT])• Provide support related to housing for households with children, etc.
(MLIT)• Introduce programs to stimulate consumption demand tied to industries
and local communities (METI)• Further improve and spread Nippon individual savings accounts(NISA) to promote accumulation of funds and diversified investments
using small amounts (Financial Services Agency [FSA])• Encourage practical investing education, primarily for beginnerinvestors (FSA)• Promote the use of individual defined contribution pension plans(MHLW and FSA)
• For all aspects of developing, managing, and selling financial
instruments, establish the general principle that financial institutions
should act in the best interest of clients (fiduciary duty) and promote
the disclosure of sales fees for financial instruments, etc. (FSA)• Reform corporate governance through the participation of asset holders
in entities that manage assets (FSA)• Challenge hometown and work (MIC)• Launch a project to expand the virtuous cycle by introducing local
economy support points (use My Number card) (MIC)• Distribute My Number cards in a stable fashion (MIC)

25

(Provisional Translation)• Develop new general indicators to capture individual consumption
trends (MIC)• Undertake various efforts such as promoting local consumer
administration in order to ensure the safety and sense of security of
consumers (Consumer Affairs Agency [CAA])• Launch a program to promote COOL CHOICE (Ministry of theEnvironment [MOE])• Formulate guidelines to achieve equal pay for equal work (MHLW)• Re-examine the ideal form of overtime work regulations in article 36
agreements (MHLW)• Promote the employment of the elderly (65-or-older Employment
Promotion Subsidy [tentative name]) (MHLW)• Provide support for companies that introduce work intervals in order toremedy the problem of long work hours (MHLW)• Verify benefits from measures that have been implemented to stimulate
consumption and examine the ideal form for the future (Cabinet
Secretariat [CAS]) (CAO)
OthersII. 21st-century-type infrastructure developments(1) Infrastructure developments toward the era of 40 million
foreign tourists• Improve the environment for receiving large cruise ships (MLIT)• Strengthen the functions of Haneda Airport and similar facilities(MLIT)• Implement measures such as making train stations barrier free(including efforts based on support for the Development Bank of Japan)(MLIT, MOF)
• Launch projects to create the infrastructure and speed up the process forreceiving foreign visitors to Japan (MLIT)• Launch a program to promote security measures related to credit
transactions (METI)• Introduce promotions to attract visitors on sudden trips to Japan to local
areas (MLIT)• Expand CIQ facilities (MLIT)• Accelerate the introduction of body scanners at airports (MLIT)
26

(Provisional Translation)• Establish a system for smooth but strict immigration control andcustoms (MOJ, MOF)•
Launch a program to promote various types of projects, includingones that make it possible for visitors to fully enjoy national parks(MOE)• Introduce programs to promote local responses to flotsam that washes
ashore, etc. (MOE)• Launch programs to improve the environment for receiving foreigners
at medical facilities (MHLW)• Raise the appeal of tourist areas by creating pleasant waterfront spaces(MLIT)• Promote urban development that makes use of tourism resources,
including scenic spots (MLIT)• Promote the construction of traditional Japanese hotels and modern
hotels (loosen floor-area ratio regulations) (MLIT)• Develop responses to inbound demand for national parks, etc., andrenovate stadiums so that they can handle international events (MLIT)• Create the infrastructure for an information system appropriate for highperformance centers (MEXT)• Undertake the bold opening of attractive public facilities (CAO)• Launch efforts to build a new National Archives of Japan (CAO)• Repair and develop items such as cultural assets that contribute to Japanas a tourism-based country (MEXT)• Verify the benefits from partnerships between cool Japan office (CAO)• Construct facilities for various events including the 2020 Tokyo
Olympic and Paralympic Games (MEXT)• Expand the National Training Center (MEXT)• Launch a program to strategically secure and pilots (MLIT)
Others(2) Promoting exports of agricultural, forestry, and fisheryproducts, and enhancing the competitiveness of agriculture,
forestry, and fishery• Create export bases both in Japan and overseas (Ministry of Agriculture,
Forestry and Fisheries [MAFF])• Reinforce the support system for expanding exports (MAFF)• Develop an environment conductive to exports, primarily by thegovernment (MAFF)

27

(Provisional Translation)• Strengthen support using the Agriculture, Forestry and Fisheries Fundfor Innovation, Value-chain and Expansion Japan (A-FIVE) (MAFF)• Make the know-how of experienced agricultural workers visible(MAFF)• Make research results visible (MAFF)• Strategically develop technology with clear objectives (MAFF)• Introduce measures to raise incomes in hilly and mountainous areas(MAFF)• Introduce comprehensive measures to promote the use of CLT (MAFF)• Train personnel with superior business sense who will be responsible
for the next generation (expand farm management schools to local
communities, increase the size of agricultural tracts, etc.) (MAFF)• Encourage innovation in areas that produce goods that areinternationally competitive (MAFF)• Promote integrated projects to strengthen the profitability ofstockbreeding and dairy farming (MAFF)• Improve the international competitiveness of plywood and lumber(build lumber processing facilities and road networks, etc.) (MAFF)• Transform operation systems into ones that are sustainable and highly
profitable (introduce leases for fishing vessels, etc.) (MAFF)• Strengthen partnerships with consumers (MAFF)• Make the price of production materials visible (MAFF)• Introduce measures to rebuild production and prevent damage fromwildlife (MAFF)• Transform the forestry industry into a growth industry (MAFF)• Restore Japan as a country with a strong fisheries industry (MAFF)• Increase safety-net funds for the agriculture, forestry and fisheries
industries (MAFF)• Introduce emergency measures to eliminate key pests (MAFF)• Lower the price of production materials (MAFF)• Improve the distribution and processing structure for agricultural,
forestry, and fisheries products (MAFF)• Review the land improvement system linked to farmland accumulation
banks (MAFF)• Examine feasible measures related to labeling that indicates place oforigin for ingredients with the goal of introducing it for all processed
foods (MAFF)• Examine a revenue insurance system with a focus on overall
agricultural business as a safety net for agricultural business owners thatappropriately manager their businesses (MAFF)

28

(Provisional Translation)• Provide support for the introduction of agricultural, forestry, and fisheryproducts, food products, and tourism resources that makes use ofentities such as overseas establishments (Ministry of Foreign Affairs[MOFA])• Introduce subsidies for the designated managed wildlife capture, etc.,
program (MOE)
Others(3) Acceleration of infra-developments such as the opening of
the Linear Chuo Shinkansen line and the Planned Shinkansen
lines• Build and make use of wide-area rapid transportation networks, which
include the Linear Chuo Shinkansen, planned Shinkansen lines, andhigh-grade highways (including measures such as expressway fee
discounts for ETC2.0 users based on large, frequent use) (MLIT)• Improve the logistics network, which includes beltways in major
metropolitan areas, and introduce measures to combat congestion(MLIT)• Introduce measures to remedy problems such as railway crossings that
seldom open due to heavy train traffic—that is, promote projects suchas the construction of continuous grade separations, etc. (including
efforts based on support for the Development Bank of Japan) (MLIT,
MOF)• Promote private urban development projects that contribute to greaterinternational competitiveness, etc. (MLIT)• Improve the functions of facilities such as strategic international
container ports and promote the formation of ports linked to Singapore,an LNG fuel supply base (MLIT)• Form compact plus networks (MLIT)• Strengthen the functions of Haneda Airport and similar facilities(MLIT) (listed twice)• Construct ports that contribute to greater competitiveness of regionalcore industries and reinvigoration of local communities (MLIT)
Others(4) Supporting the introduction of products such as infrastructure
overseas29

(Provisional Translation)• Support Japanese companies’ introduction of infrastructure overseas
through the Japan Bank for International Cooperation (JBIC) (MOF)• Fundamentally expand the supply of risk money to promote resource
development through various efforts including amending laws to makeit possible to support the acquisition of overseas resource companies byJapan Oil, Gas and Metals National Corporation (JGMEC) and otheractivities (exploration, asset purchases, corporate acquisitions, etc.)(METI)• Support Japanese companies’ introduction of infrastructure overseas
through the Japan International Cooperation Agency (JICA) (MOF)• Increase the supply of risk money and strengthen the financial positionof Nippon Export and Investment Insurance (NEXI) (METI)• Support Japanese companies’ introduction of infrastructure overseas
through the Japan Overseas Infrastructure Investment Corporation forTransport & Urban Development (JOIN) (MLIT)• Launch programs to support packages that strengthen the international
competitiveness of Japanese ICT (MIC)• Launch projects related to the integrated development of a foundation
for the overseas expansion of broadcast content (MIC)• Support Japanese companies’ introduction of infrastructure overseas
through the Fund Corporation for the Overseas Development of Japan’s
ICT and Postal Services (JICT) (MIC)• Support the overseas expansion of SMEs and microenterprises andother entities and the export of infrastructure through ODA (MOFA)• Implement measures to accelerate negotiations on investment
agreements (MOFA)• Introduce programs that promote the international expansion ofhealthcare (MHLW)• Launch programs that support the Asia Human Well-Being Initiative(MHLW)• Launch programs to promote the spread of high quality infrastructure(METI)• Launch programs to examine the feasibility of detailed high quality
infrastructure projects (METI)• Launch projects to develop infrastructure to stimulate global demandfor content (METI)• Promote the introduction of infrastructure systems overseas (MLIT,
MOFA)• Promote the introduction of services such as nursing and healthcare

30

(Provisional Translation)

overseas through the Cool Japan Fund (METI)
Others(5) Acceleration of efforts toward productivity improvement• Launch projects to promote the creation of new businesses that makeuse of the IoT (METI)• Launch projects to develop social systems that make use of the IoT(METI)• Launch projects that support the creation of IoT services (MIC)• Launch a project to create global research bases related to artificial
intelligence (METI)• Create an advanced AI data testbed with the goal of creating businesses
in numerous economic fields (MIC)• Promote the development of an environment that makes use of data
(METI, CAS, MIC)
• Launch projects that promote more advanced broadcast services suchas terrestrial 4K broadcasts (MIC)• Launch a program that supports the introduction of nursing care robots
and conduct research to verify the benefits from introducing such
equipment (MHLW) (listed twice)• Introduce a program to train system integrators in order to promote theintroduction of robots (METI)• Research and develop technology to miniaturize extremely highresolution synthetic aperture radar (METI)• Create the infrastructure for innovation in entities such as R&D
corporations, starting with the introduction of superconducting
technology to linear accelerators (MEXT)• Develop core rockets, next-generation satellites, and space station
supply vehicles and create aerospace related facilities (MEXT)• Accelerate the realization of advanced energy technology (MEXT)• Promote new energy policies, etc. (METI)• Build the education and research infrastructure for national universities(MEXT)• Implement measures such as promoting the research and developmentof pharmaceuticals and medical equipment through industry-academiagovernment collaboration (CAO)• Launch a project to achieve a digital revolution in the field of healthcare(MHLW)

31

(Provisional Translation)• Introduce programs to promote the commercialization of research
results with the goal of creating future industries (tentative) (MEXT)• Create an environment conductive to technological innovation by local
communities in order to strengthen industry-academia-government
collaboration (MEXT)• Train ICT related people (MIC)• Improve the infrastructure for using healthcare and health data (MIC)• Introduce programs to support innovation by R&D-type venturecompanies and similar entities (METI)• Implement measures such as creating access points to the My Number
portal (CAS, CAO)
• Promote i-Construction (MLIT)• Encourage the introduction of innovative production technology forship building (i-Shipping) (MLIT)• Realize IT-based agriculture and independent operation of vehicles(trucks, etc.) through a quasi-zenith satellite system (CAO)• Promote greater productivity in the trucking industry (MLIT)• Implement measures such as developing an environment conductive to
FinTech trends and creating an international network (FSA)• Promote the Tokyo International Financial Center concept (FSA)
OthersIII. Response to risk such as uncertainly due to UK’s exitfrom the EU and support for SMEs and microenterprises
as well as local communities(1) Financing support of SMEs and microenterprises• Support the overseas expansion and fund raising by SMEs andmicroenterprises through the Japan Finance Corporation and similar
entities (MOF, MHLW, METI)
Others(2) Support for strengthening the management power andimproving productivity of SMEs and microenterprises

32

(Provisional Translation)• Introduce programs that promote investment in the future of local
communities (METI)• Launch programs to reinforce the infrastructure for jump starting
investment in the future of local communities (METI)• Introduce programs to support the development of sales channels for
microenterprises (METI)• Facilitate business conversions for SMEs (METI)• Examine measures such as those to facilitate business succession of
SMEs (METI)• Introduce programs to improve the business skills and raise
productivity of SMEs with an eye toward raising the minimum wage
(MHLW)• Strengthen implementation of related statutory regulations, such as
expanding cases of violations in implementation standards of the Act
Against Delay in Payment of Subcontract Proceeds, Etc. to
Subcontractors (Japan Fair Trade Commission, METI, ministry
responsible for the business)• Launch projects to improve business terms (strengthen and improveoutsourcing guidelines for each type of industry, etc.) (METI)• Make use of local benchmarks (FSA, METI)• Review the system of credit guarantees (METI)• Promote measures such as debt forgiveness by public sector and private
sector financial institution (FSA, MOF, METI, MIC)
• Strengthen the regional finance functions (FSA)• Promote the use the Regional Economy Vitalization Corporation ofJapan and similar entities (CAO, FSA)
• Strengthen support to smoothly shift labor to growth companies, etc.
(MHLW)• Obtain and make use of intellectual property by SMEs (METI)• Launch projects to spread and promote energy-efficient natural-coolingequipment that uses cutting-edge technology (MOE)• Launch projects involving PR, education, and consulting related topersonal information protection for SMEs and microenterprises(Personal Information Protection Commission)
Others(3) Promotion of regional reinvigoration• Establish regional reinvigoration subsidies in order to invest in the33

(Provisional Translation)

future (CAO)• Develop an intellectual foundation for promoting regional
reinvigoration (CAO)• Train and secure human resources through entities such as the regional
reinvigoration colleges (CAO)• Create high-added-value industries in local communities (CAO)• Introduce measures to remedy problems such as railway crossings that
seldom open due to heavy train traffic—that is, promote projects suchas the construction of continuous grade separations, etc. (including
efforts based on support for the Development Bank of Japan) (MLIT,
MOF) (listed twice)• Promote the installation of platform screen doors for trains (including
efforts based on support for the Development Bank of Japan) (MLIT,
MOF)• Implement measures such as making train stations barrier free(including efforts based on support for the Development Bank of Japan)(MLIT, MOF) (listed twice)• Promote the removal of utility poles and implementation oftransportation safety measures (including efforts based on support for
the Development Bank of Japan) (MLIT, MOF)
• Form compact plus networks (MLIT) (listed twice)• Create an environment that is conductive for viewing homes as
infrastructure for daily life (making use or removing empty houses, etc.
(MLIT)• Implement measures such as seismic retrofitting of water facilities(MHLW)• Promote efforts to create sewer facilities that are safe and provide asense of security (MLIT)• Introduce subsidies for the promotion of a recycling-oriented society(water purification tanks) (MOE)• Implement stimulus measures for disadvantaged areas (MLIT)• Provide funding for measures to counter Carolina anole on the
Ogasawara Islands, a World Natural Heritage site. (MOE)• Support the formulation of a plan to maintain local communities ondesignated remote habited islands on Japan’s borders (CAS)• Strategically secure and train both Japanese and non-Japanese humanresources skilled in construction (MLIT)• Promote the creation PFI projects (make use of the Private FinanceInitiate Promotion Corporation of Japan, etc.) (CAO)• Provide support that contributes to the promotion of water supply and34

(Provisional Translation)

sewage system concession projects (CAO)• Conduct research on moving the Agency for Cultural Affairs from
Tokyo (MEXT)• Launch programs to support the formation of networks among villages
in sparsely populated areas (MIC)• Launch programs to promote the develop telecommunication
infrastructure (MIC)• Promote internships related to regional reinvigoration (CAS)• Support the formation and expansion of small bases and locallyoperated organizations (CAO)• Promote efforts to accelerate structural reforms through national
strategic special zones, etc. (spread ones that have a strong economic
impact throughout Japan, etc.) (CAO)• Challenge hometown and work (MIC) (listed twice)• Introduce programs to promote the creation of ICT-based cities, people,
and work (MIC)• Launch a project to expand the virtuous cycle by introducing local
economy support points (use My Number card) (MIC) (listed twice)• Implement measures such as creating quality employment in local
communities (MHLW)• Promote the creation of a CLT verification and test building, etc.
(MLIT)• Implement safety measures developed following the Karuizawa ski bus
accident (MLIT)
Others(4) Responding to risks• Extend the expiration date of programs such as the recapitalization
program based on Act on Special Measures for Strengthening Financial
Functions (Strengthening Financial Functions Act) and the stock
purchase program by the Bank’s Shareholdings Purchase Corporation(FSA, MOF)
• Collect and analyze information relation to Japan-EU and Japan-UK
relations following UK’s decision to exit the EU (MOFA)
Others35

(Provisional Translation)

IV. Reconstruction from the 2016 Kumamoto Earthquake
and the Great East Japan Earthquake, safety andsecurity, and disaster prevention(1) Recovery and reconstruction from the 2016 Kumamoto
Earthquake• Launch projects to build public housing for disaster victims (MLIT)• Implement measures such as support for fund raising to aid recovery
from and reconstruction following the 2016 Kumamoto Earthquake
through entities such as Japan Finance Corporation (MOF, MHLW,
MAFF, METI)• Implement measures to support efforts to look after and provide
counseling for victims of the disaster (MHLW)• Introduce projects to restore facilities used jointly by SME associations,etc., damaged by the 2016 Kumamoto Earthquake (METI)• Implement measures to restore or reconstruct facilities related toagricultural, forestry, and fisheries industries, etc., damaged by the 2016
Kumamoto Earthquake (MAFF)• Restore damaged public civil engineering facilities, etc. (MLIT, MAFF)• Promote recovery and reconstruction following the 2016 Kumamoto
Earthquake (measures to prevent damage from water and landslides,
roads, ports, etc.) (MLIT)• Restore police facilities, etc., damaged by the 2016 Kumamoto
Earthquake (National Police Agency [NPA])• Support the disposal of waste from the disaster, restore damaged
national park facilities, etc. (MOE)• Introduce subsidies for the promotion of a recycling-oriented society(water purification tanks) (MOE) (listed twice)• Launch projects such as ones to restore damaged social welfare
facilities, medical facilities, and similar facilities (MHLW)• Launch projects to restore cultural assets damaged by the 2016
Kumamoto Earthquake (MEXT)• Restore damaged schools and similar facilities (MEXT)• Expand subsidies for employment (MHLW)• Implement measures such as providing school subsidies and partial andfull tuition waivers to children, etc. (MEXT)• Disseminate information on urgent issues both in Japan and overseas
(CAO)

36

(Provisional Translation)• Increase special tax grants to establish a reconstruction fund (MIC)• Restore damaged public housing and similar facilities (MLIT)• Implement measures such as support for debt consolidation for victims
of natural disaster (FSA)• Conduct a basic survey of the border of areas hit by the 2016 Kumamoto
Earthquake (MLIT)
Others(2) Accelerate reconstruction from the Great East Japan
Earthquake• Accelerate the construction of specially designated “reconstruction
roads” and “reconstruction-support” roads, and ports that support
reconstruction (MLIT)• Launch projects to restore tourism by promoting inbound travel to the
Tohoku region (MLIT)• Create a Tohoku Tourism Fund (tentative name) through private sector
leadership (Reconstruction Agency, MLIT)• Implement measures such as decontaminating soil and other items thathave been contaminated by radioactive material (MOE)• Launch projects to respond to decommissioned nuclear reactors andcontaminated water, including promoting the innovation coast concept(METI)• Support efforts by farmers impacted by the disaster to restart farming
activities (twelve municipalities impacted by the Fukushima nuclear
accident) (MAFF)• Introduce programs to support activities such as the creation of businessin the area impacted by the nuclear accident (METI)
Others(3) Measures to reinforce disaster response and respond to aging
infrastructure• Launch programs to promote the introduction of various types offacilities that contribute to disaster prevention and mitigation, a more
resilient Japan, and local communities with a smaller carbon footprint,
such as independent distributed energy facilities (MOE)• Expand and reinforce disaster prevention measures in areas around37

(Provisional Translation)

nuclear power plants (CAO)• Implement measures to prevent damage to the sites of former brown
coal mines from a massive Nankai Trough Earthquake (METI)• Implement measures to prevent or mitigate damage to and respond toaging agricultural irrigation facilities, mountainous areas, fishing ports,and sea embankments (MAFF)• Implement responses to volcanic eruptions (MAFF)• Implement measures to prevent or mitigate damage to and respond toaging MOJ facilities, court facilities, and police facilities (MOJ,
Supreme Court, NPA)
• Promote efforts such as massive disaster measures, including creating
disaster prevention training facilities and communication infrastructure(NPA)• Restore public civil engineering facilities, etc. (MLIT, MAFF)• Provide concentrated support for various types of measures, includingones to prevent or mitigate damage and respond to aging facilities inlocal communities (MLIT)• Implement measures to prevent or mitigate damage to and respond toaging rivers, roads, ports, etc. (MLIT)• Build a network that can serve as an alternative network (missing link,etc.) (MLIT)• Implement measures such as providing subsidies to promote theformation of a recycling-based society (MOE)• Strengthen the disaster response capabilities of emergency firefighting
teams and local fire brigades (MIC)• Introduce more advanced disaster information communication methods,
etc. (MIC)• Strengthen efforts related to disaster prevention and mitigation by
constructing a quasi-zenith satellite system (CAO)• Improve the resilience of broadcast networks (MIC)• Implement measures such as installing sprinklers and conducting
seismic retrofitting of medical facilities, facilities for the elderly, andsimilar facilities (MHLW)• Provide subsidies for industrial water supply projects (METI)• Launch project to make oil supply infrastructure more resilient (METI)• Launch programs to support the stable supply of petrochemical
products (METI)• Introduce subsidies for construction related to preventing damage fromabandoned mines, etc. (METI)• Implement measures to prevent or mitigate damage to and respond to38

(Provisional Translation)

aging government facilities, existing infrastructure, etc. (MLIT)• Implement measures such as seismic retrofitting of water facilities(MHLW) (listed twice)• Promote efforts to create sewer facilities that are safe and provide asense of security (MLIT) (listed twice)• Move forward with land surveys in case of disasters such as earthquakes
and torrential rains (MLIT)• Develop facilities related to disaster prevention and mitigation andresponding to aging facilities of entities such as the National Researchand Development Agency (MEXT, METI)• Strengthen the disaster prevention functions of government offices,which are used as designated shelters and disaster response bases (local
finance measures) (MIC)• Investigate models to broadly spread BCPs (CAS)• Implement disaster prevention measures such as developing a central
disaster prevention radio network and system for estimating flooding
by tsunamis (CAO)• Promote seismic retrofitting of homes and buildings (MLIT)
Others(4) Ensuring safety and security• Strengthen safety measures for Japanese schools and Japanese nationals
overseas, including ones related to support staff (MOFA)• Provide support for efforts to strengthen the ability to respond to public
safety in developing countries (MOFA)• Assign personnel and strengthen the system for emergencies (terrorist
attacks, etc.) (MOFA)• Strengthen the ability to collect information on issues such as
international terrorism and to disseminate overseas safety information,etc. (CAS, MOFA, MOJ)
• Reinforce terrorism countermeasures, including creating material andequipment for such measures (NPA)• Establish a system for smooth but strict immigration control andcustoms (MOJ, MOF) (listed twice)• Reinforce the crisis management system for facilities such as the Prime
Minister’s Official Residence (CAS)• Develop an information gathering satellite to strengthen crisis
management and implement similar measures (CAS)39

(Provisional Translation)• Strengthen cybersecurity (MIC)• Promote industry-related cybersecurity (METI)• Promote various efforts including the use of cybersecurity insurance by
SMEs and microenterprises (METI)• Commission evaluations of cybersecurity measures for independentadministrative agencies and designated corporations (CAS)• Create a joint response system with entities such as major service
providers with an eye toward the 2020 Tokyo Olympic and Paralympic
Games (CAS)• Strengthen the cybersecurity at Japan Pension Services (MHLW)• Develop emergency measures for Ebola, Zika, and other international
infectious diseases (CAS)• Construct a strategic maritime safety system and implement similar
measures (MLIT)• Implement measures to stabilize the housing market (“sumai-kyufukin”(housing benefit), a benefit paid to lessen the burden of the consumption
tax increase on home buyers) (MLIT)• Promote local consumer administration in order to ensure the safety andsense of security of consumers and implement similar measures (CAA)• Introduce programs to operate a system to monitor compliance withlaws (antimonopoly law, etc.) (METI)• Implement measures such as conducting nation-wide surveys ofchildren’s health and the environment, building facilities to process
PCB waste, and developing a system for monitoring particulate matter
2.5 (MOE)• Reinforce the ability to conduct investigations and manage sites, suchas maintaining police vehicles (NPA)• Strengthen the security system at correction facilities (MOJ)• Implement measures to prevent people from escaping court facilities(Supreme Court)• Hold a Nippon Fair in order to educate people about the appeal of Japan(MOFA)• Strengthen Japan-Russia relations by expanding youth exchanges with
Russia (Japan-Russia Youth Exchange program) (MOFA)• Strengthen Japan-Russia relations by conducting projects that introduce
Japan to Russians (MOFA)• Strengthen the Self Defense Forces’ monitoring system, increase theability to quickly deploy and respond, and respond to ballistic missile
attacks (Ministry of Defense)40

(Provisional Translation)

OthersNote: When implementing the measures of the various ministries given
above, efforts will be made to link measures in order to eliminate
vertically segmented administration and benefit from synergies
between the policies.

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Chapter 4 Size and economic impact of included
measures
The size of this economic measures is shown in the Annex. It is projectedthat at the current time, the overall short-term economic impact of the budget
for these measures is to boost real GDP (demand) approximately 1.3
percentage.
Furthermore, since this package includes FILP loans used for investments inthe future to build a foundation of growth in the medium and long term, it isexpected that investment by the private sector and other parties will bepromoted. It is also expected that development of concrete measures andtheir implementation will lead to stimulating private-sector investment andconsumption, raise productivity, and generate economic growth as theemployment and income environment improve further.
Notes: The economic impact given above is estimated using the scale ofprojects calculated based on percentages of total expenses accounted
for by subsidies, etc.

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(Provisional Translation)

Annex

Size of these measures
Total size

Fiscal component

Accelerating efforts to build asociety in which all citizens are
dynamically engaged

approximately
3.5 trillion yen

approximately
3.4 trillion yen

II. 21st-century-type infrastructuredevelopments

approximately
10.7 trillion yen

approximately
6.2 trillion yen

I.

III. Response to risk such as
uncertainly due to UK’s exit fromthe EU and support for SMEs andmicroenterprises as well as local
communities

approximately
10.9 trillion yen
In addition, extension of theStrengthening Financial
Functions Act, etc.:
32 trillion yen1

approximately
1.3 trillion yen

approximately
3.0 trillion yen

approximately
2.7 trillion yen

IV. Reconstruction from the 2016
Kumamoto Earthquake and theGreat East Japan Earthquake,safety and security, and disasterprevention

approximately
28.1 trillion yen
Total

Note 1:

In addition, extension of theStrengthening Financial
Functions Act, etc.:
32 trillion yen (listed twice)approximately
13.5 trillion yen

As emergency measures to respond to financial conditions, terms
such as the expiration date of the ceiling on purchases of stocks,
etc., by the Bank’s Shareholdings Purchase Corporation (up to 12
trillion yen in government guarantees) and ceiling on public funds
based on the Strengthening Financial Functions Act (up to 20
trillion yen in government guarantees) may be extended.

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Breakdown of fiscal component (reference)

I. Accelerating efforts tobuild a society in which
all citizens are
dynamically engaged
II. 21st-century-type
infrastructuredevelopments
III. Response to risk suchas uncertainly due toUK’s exit from the EU
and support for SMEs
and microenterprises aswell as local
communities
IV. Reconstruction from the2016 Kumamoto
Earthquake and theGreat East Japan
Earthquake, safety andsecurity, and disasterprevention
Total

Fiscalcomponent

Of which areexpenditures fromthe central
government andlocal government

approximately
3.4 trillion yen

approximately
2.5 trillion yen

approximately
0.9 trillion yen

approximately
6.2 trillion yen

approximately
1.7 trillion yen

approximately
4.4 trillion yen

approximately
1.3 trillion yen

approximately
0.6 trillion yen

approximately
0.7 trillion yen

approximately
2.7 trillion yen

approximately
2.7 trillion yen

approximately
0.0 trillion yen

approximately
13.5 trillion yen

approximately
7.5 trillion yen1

approximately
6.0 trillion yen2

Of which are FILP
loans

Note 1: Of which, 6.2 trillion are central government expenditures
From general account: an additional 4.0 trillion yen for FY2016, an addition 0.1 trillion
yen of treasury liabilities, and an additional 0.3 trillion yen for FY2017 and after
From special accounts: an additional 0.5 trillion for FY2016, an additional 0.2 trillion
for FY2017 and after, and 1.0 trillion in reduced insurance premiums in FY2017
and after
Note 2: There is an addition 3.3 trillion yen in FY2016 FILP plans, and an addition 1.8
trillion yen for FILP plans for FY2017 and after (the 0.9 trillion yen of projects
for lowering interest rate on interest-bearing scholarship (for March 2017 andafter graduates) was posted in the fiscal 2016 FILP plans).

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