About "Comprehensive Economic Measures to Secure People's Livesand Livelihoods toward Relief and Hope”

December 8, 2020
Cabinet Decision

The "Comprehensive Economic Measures to Secure People’s Lives andLivelihoods toward Relief and Hope” shall be determined as attachedhereto.

(Attachment)

Comprehensive Economic Measures to
Secure People’s Lives and Livelihoods
toward Relief and Hope

December 8, 2020

Table of Contents
Chapter 1

Recognition of Current Circumstances and Concept of the
Economic Measures................................................................................. 1

I.

Current Situations of Novel Coronavirus Disease and the Current Status of the
Economy ............................................................................................................. 1

II.

Concept of Economic Measures .......................................................................... 2

Chapter 2
I.

Measures to be taken ............................................................................... 6

Containment Measures for the Novel Coronavirus Disease ................................. 6
1.

Securing the Medical Treatment System and Supporting Medical Institutions ... 6

2.

Enhancing the testing system and developing vaccination system .................... 8(1) Improvement of PCR and Antigen-Detecting Test System............................... 8(2) Development of Vaccination System and Therapeutic Drugs, etc.................... 8
3.

Thorough Implementation of Infection Prevention Measures Based on
Knowledge ........................................................................................................ 94.

International Cooperation for Containing Infectious Diseases ..........................11II.

Promoting Structural Change and Virtuous Economic Cycle for Post-Corona
Era .................................................................................................................... 12

1.

Realizing Digitalization and Green Society ...................................................... 12(1) Digitalization ................................................................................................. 12(i)

Establishment of Digital Government........................................................ 13(ii) Promotion of the Spread of My Number cards and Their Further
Utilization ................................................................................................. 14(iii) Further Promotion of ICT in Education, Medical Care, Welfare, etc. ......... 15(iv) Improvement of Environment for Development and Utilization of New
Technologies in the Digital Field ............................................................... 16(v) Promoting Regulatory Reform toward Digitalization.................................. 17(2) Realization of Green Society......................................................................... 19(i)

Developing New Technologies for Carbon Neutrality ................................ 19(ii) Changing the Lifestyles of the People to Realize Green Society .............. 20
2.

Enhancing Productivity through Economic Structural Changes and Innovation 22(1) Supporting Business-Style Changes of SMEs and Re-Building Businessesof Firms......................................................................................................... 22(2) Promoting Innovation .................................................................................... 24

(3) Making Supply Chains Resilient and Improving International
Competitiveness ........................................................................................... 26(i)

Improving the Effectiveness of Supply-Chain Resilience .......................... 26(ii) Incorporating Overseas Vitality such as Promotion of Foreign Direct
Investment in Japan ................................................................................. 27(iii) Realization of “Japan as a Global Financial Center” (Finance PlaceJapan) ...................................................................................................... 28
3.

Realizing Virtuous Economic Cycles Led by Private Demand in Regions,Society and Employment................................................................................. 31(1) Regional Revitalization ncluding Encouraging People to Go to Regional
areas ............................................................................................................ 31(i)

Recovery in Domestic Tourism Demand ................................................... 31(ii) Support for Unique Regional Initiatives, such as Generating New Flow ofPeople ...................................................................................................... 32(iii) Support for Cultural, Artistic and Sports activities ..................................... 34(iv) Developing Infrastructure to Support Private Demand-Led Growth inLocal Communities ................................................................................... 34(2) Employment Package to Facilitate Workers to Move Smoothly to Growing
Sectors ......................................................................................................... 35(3) Revitalizing the Agriculture, Forestry and Fisheries by Further Expanding
Exports ......................................................................................................... 37(i)Strengthening Production Base and Export Capacity to Further Expand
exports ..................................................................................................... 37(ii) Support for Business Continuity in Light of the Impact of the Novel
Coronavirus Disease ................................................................................ 39(4) Supporting Household and Private Demand ................................................. 39(i)

Supporting the Livelihoods of Households, Reducing Economic Burdens,
Stimulating Demand, and Other Measures ............................................... 39(ii) Support for the Employment Ice Age Generation ...................................... 41
III. Ensuring Safety and Relief by Promoting Disaster Prevention and Mitigation
and National Resilience ..................................................................................... 43
1.

Promotion of Disaster Prevention and Mitigation and National Resilience ....... 43

2.

Acceleration of Rehabilitation and Restoration from Natural Disasters ............ 45

3.

Ensuring the Safety and Relief of the People .................................................. 46

IV. Timely and Appropriate Execution of Reserve Funds for Measures against
Novel Coronavirus Diseases ............................................................................. 47

Chapter 1

I.

Recognition of Current Circumstances
and Concept of the Economic Measures

Current Situations of the Novel Coronavirus and theCurrent Status of the Economy

Under the declaration of a state of emergency based on the Act on Special Measures
Concerning Countermeasures against Pandemic Influenza and New Infectious Diseases
Preparedness and Response 1, our country's economy fell into its worst postwar state in
April and May this year as a result of an artificial halt to the economy. However, since thedeclaration was lifted, the level of socioeconomic activities has been gradually raised in amanner compatible with the prevention of the spread of infection. In July and August, in
addition to the increase in the number of new positive cases, due to the effects of theheavy rain in July 2020, there was a standstill in the economy. However, the recovery of
the economy in our country continues, with the increase in exports due to the recovery of
the European and American economies after the termination of lockdown, and the
combined effects of the "Emergency Economic Measures to Cope with the Novel
Coronavirus (COVID-19)" 2 and the 1st and 2nd supplementary budgets for FY 2020, to
improve private consumption.
However, after the GDP gap 3 worsened significantly in the April-June quarter of thisyear, the gap remained to the considerable degree also in the July-September quarter,
when economic activity resumed and a high growth rate was shown. Economic recovery
is still under way, with economic levels remaining below pre-Corona levels. Under thecircumstances, the employment and income environments, which form the basis forprivate consumption, remained weak, falling far below the pre-Corona level, although thenumber of employees and wages remained firm. The impact on the employment andincome of non-regular workers and women in particular was evident. In addition, giventhat bonuses are expected to decrease significantly this winter and employment is alagging index, it is necessary to pay sufficient attention to the possibility that adverse
effects may develop later depending on future trends in infectious diseases.
With regard to the spread of the Novel Coronavirus disease, it has spread again in
Europe and the United States since October this year, and major European countries have1

Act on Special Measures Concerning Countermeasures against Pandemic Influenza and New
Infectious Diseases Preparedness and Response (Act No. 31 of 2012).
2 Cabinet decision on April 20, 2020.
3 According to an estimate by the Cabinet Office (Published on November 27, 2020) based on the
1st preliminary report of GDP for the July-September quarter of 2020 (Published on November 16,2020), the figure for the April-June quarter was minus 10.5%, and the figure for the July-September
quarter was minus 6.2%. The size of the GDP gap depends on the underlying data and estimation
methods, so it is necessary to consider the gap in some breadth.

1reintroduced restrictions on socioeconomic activities. As a result, downward pressure on
the economy from the effects of the disease, particularly on private consumption, is rapidly
emerging. The Japanese economy is also concerned about downside risks to exports andproduction. In Japan as well, the number of new positive cases began to increase in
November, surpassing the highest level ever, and there is a growing concern among the
public that the diseases will further spread and economic activities that have started tomove will stagnate.
Furthermore, seeing into the post-corona era, for example, as for face-to-face services,
the business model used in the past does not work and the circumstances don’t giveopportunity to conduct economic activities in response to changes in the new era. Suchunassailable mindset is reflected in the decline in private investment, which is the engineof growth, including the software required for digitization. According to the outlook of theinternational organizations 4 as well, among the major developed countries, it is expectedthat the growth rate of our country in the post-Corona recovery phase would be low, andthe time to return to the pre-corona stage would be delayed. Therefore, strengthening the
growth potential, which has been an issue for many years, is essential for realizing asustainable recovery led by private demand.
First of all, the Government will continue to take all possible measures to prevent the
spread of the disease with a strong sense of crisis, including the results of data analysis
using information technology (IT) and artificial intelligence (AI), through well-defined
infection control measures based on knowledge gained from the experience since thebeginning of the year. And, while controlling the spread of the disease, the Government
will continue to support employment and business, and firmly move the economy. At thesame time, in order to realize a new economic structure and growth model in post-coronaera, it is necessary to strongly promote regulatory reform, enhance growth potential
through wise spending, encourage companies to make use of their cash and deposits,
and attract private investment, which is weak, compared to major countries. In light of theconsiderable GDP gap, strong economic measures must be taken to restore our country's
economy to its pre-corona level by the end of next fiscal year and return it to a growth pathled by private demand, in order to avoid falling into deflation by any means.

II. Concept of Economic Measures
Based on recognition of the current situation mentioned in the above, the Government
will formulate these new economic measures to protect the lives and livelihoods of thepeople, to maintain employment, to restore the economy, and to make a new breakthrough4

The International Monetary Fund (IMF) "World Economic Outlook" (Published October 2020) andthe Organisation for Economic Co-operation and Development (OECD) "Economic Outlook 108"
(Published December 2020).

2

for growth, and will formulate the FY 2020 3rd supplementary budget.
These economic measures are composed of two major viewpoints, one of them is tostrengthen the sure “defense” to address the concerns of households and businesses,
and another one is to shift its focus to "offense" for a new era. "Defense" means, first andforemost, to ensure a comprehensive medical care system and make every effort toprevent the spread of the disease, while at the same time mitigating as much as possible
the economic impact of the domestic and overseas epidemic situations particularly on
employment, business and livelihoods.
On the other hand, "offense" refers to the challenges which have come to surface
through the COVD-19 Crisis: significant delay in digitization in the national and local
governments, monopolar concentration in Tokyo, and vulnerability of our country's supply
chains with high concentration of production bases overseas. While boldly attracting
private investment, the Government should concentrate its resources on measures thatwill increase productivity, encourage continuous wage increases, and lead to sustainable
income growth and stronger growth potential, such as the realization of green society thatcreates a virtuous cycle between the environment and the economy, the strengthening of
the business structure of SMEs and small businesses that support the economic
foundation through support for business reconstruction, the smooth movement of laboracross industries and occupations, and the strengthening of an environment thatgenerates discontinuous innovation.
From this perspective, the three pillars of the economic measures are as follows. The
first is measures to prevent the spread of the novel coronavirus disease. Based on theknowledge, etc. gained so far, the Government will take all possible containment measures
to ensure compatibility with socioeconomic activities, and will work to further strengthen
the medical care provision system and develop a prompt and stable vaccination system
in order to prevent hospital beds shortage. In addition, the Government will provide support
for initiatives in accordance with the actual conditions of the region, including providing
additional support when local governments request restaurants, etc., which provide
alcoholic beverages, to shorten their business hours, and provide support of the paymentof cooperation funds. In addition, the Government will make every effort to ensure effective
infection countermeasures in preparation for the Olympic and Paralympic Games Tokyo
2020 next summer.
The second is the realization of a virtuous cycle and a transformation of the economic
structure toward the post-corona. In order to establish a growth model for the new era, theGovernment will strengthen the growth potential and boldly attract private demand bymobilizing all possible measures including the budget, regulatory reform, and tax reform
under wise spending from the following viewpoints.
(i)"Realization of digital reform and green society"Integrated and fundamental acceleration of digitization at national and local levels,
enhancement of promotion of the use of My Number Cards, development andimprovement of advanced digital infrastructure, promotion of digitization of3

education including high schools, and promotion of early development and social
implementation of innovative technologies toward carbon neutrality by 2050
(ii)

"Improving productivity through economic structural transformation and innovation"(iii)

As a matter of course, the purpose of the program is not to eliminate SMEs andother entities that support local communities. The Government provides support
for business reconstruction and positive investment, accelerates innovation suchas world-class University Fund, and strengthens supply chains effectively by
diversifying production bases(iv)"Realization of a virtuous cycle led by private demand in local communities, society
and employment"
Measures to assist the smooth movement of labor to growth fields and theinvestment in human resources necessary for it, while supporting employment andlivelihoods in addition to promoting flow of people to provincial areas throughbacking vitalization of domestic sightseeing and regional unique efforts after
having taken thoroughly prevention measures against the spread of the disease,and expansion of export of agricultural, forestry, and fishery products and food
which underpin the local economy, as well as measures to stimulate household
demandThe third is to ensure safety and relief by promoting disaster prevention, mitigation andbuilding resilience of national land. In addition to accelerating recovery and reconstruction
from disasters such as torrential rains in July 2020, the Government will take quick andflexible measures for disaster prevention, mitigation, and building national land’s resiliencein accordance with the situation of natural disasters from the next fiscal year to FY 2025.
The Government will promptly compile a "5-Year Acceleration Measures for Disaster
Prevention, Disaster Mitigation, and National Land’s Resilience (tentative name)" which
will focus on measures against severe storms and floods and imminent large earthquakes,
measures against deterioration for preventive maintenance, and measures for thepromotion of digitalization. In particular, the additional project scale required formeasures to be accelerated and deepened will be aimed at approximately 15 trillion yen,and for the first fiscal year, measures will be taken in the FY 2020 3rd supplementarybudget.
In light of the current impact of the spread of the disease, the Government will executethe reserve fund for countermeasures against the novel coronavirus in this fiscal year in atimely and appropriate manner as necessary. Under these 3 pillars, based on the conceptof "15 month budget", the Government will formulate the FY 2020 3rd supplementarybudget in an integrated manner with the FY 2021 initial budget, and implement thoroughfiscal policies in a seamless manner. In doing so, in light of the fact that the economic
support and boost effects of the previous economic measures and supplementary budgets
are expected to be realized mainly in the current fiscal year, the Government will secure ascale that is large enough to generate sufficient effects to stimulate private demand,
including capital investment, while trying to support the economy through public
4expenditure under the concept of wise spending. The expeditious implementation as
possible will lead to a virtuous cycle of the economy, together with the self-sustaining
recovery of private demand. Taking advantage of the current low interest rate situation,
the Government will actively utilize the methods of the Fiscal Investment and Loan
Program (FILP), and take comprehensive measures by mobilizing all possible policy
measures, including regulatory and institutional reforms and tax system reforms, with theaim of certainly realizing a growth path led by private demand through improving
productivity and continuously increasing wages.
The Bank of Japan enhances monetary easing with a view to doing its utmost to support
financing mainly of firms and maintaining stability in financial market. The Government willcontinue to share a strong sense of tension with the Bank of Japan and work closely
together under an appropriate policy mix of fiscal and monetary policies. The Government
expects the Bank of Japan to pay careful attention to the economic impact of the novel
coronavirus disease and conduct appropriate monetary policy.

5Chapter 2

Measures to be taken

Based on the concept in Chapter 1, these economic measures aim to firmly protect the
lives and livelihoods of the people and to realize a sustainable growth path led by private
demand in the new post-corona era. Specifically, the Government will focus on thefollowing measures, which will lead to private demand-led growth at its core, such asencouraging private investment under the concept of wise spending, with three pillars: (1)measures to prevent the spread of the novel coronavirus disease; (2) transforming the
economic structure and creating a virtuous cycle toward post-corona; and (3) ensuringsafety and relief by promoting disaster prevention, mitigation and building national land’s
resilience.
At the same time, the Government will effectively disseminate information and publicize
the government's efforts and situation regarding the novel coronavirus disease, including
the measures incorporated in these economic measures, so that the public will be able tounderstand them clearly and accurately.

I.

Containment Measures for the Novel Coronavirus
Disease

1. Securing the Medical Treatment System and Supporting
Medical Institutions
In response to the spread of the novel coronavirus disease, it is extremely important
for the public to work together once again to thoroughly implement basic measures against
the disease, and to ensure a complete medical care system, including securing hospitalbeds.
The "Emergency Comprehensive Support Grant for the Novel Coronavirus Disease"
will be increased, and prefectures will continue to strengthen the medical care provisionsystem, etc., by securing beds at priority medical institutions, etc., supporting the securingof accommodation facilities for patients with mild symptoms, and improving measures forforeign nationals, etc., corresponding to their local circumstances. As an emergency andtemporary response in light of the current impact of the spread of the disease, support will
be provided to medical institutions, including medical institutions for treatment andexamination, to prevent the spread of the disease, and special measures will be approvedin terms of medical fees for supporting pediatrics, etc. and supporting the transfer ofpatients recovering from the disease. In addition, in order to respond to the pressing
medical conditions, the Government will expand the Gathering Medical Information

6

System on COVID-19 (G-MIS 5), and support the development of facilities such as negative
pressure and private rooms necessary for inpatient medical institutions and institutions toinspect returnees and out-contacts, in order to accept patients with the disease.
The "Emergency Comprehensive Support Grant for the Novel Coronavirus Disease"for nursing care, welfare for persons with disabilities, and child welfare will be increased,
and support will be provided for the purchase of goods necessary for disease control
measures, etc. In addition, in order to further promote infection control measures for
elderly care facilities, foster care facilities, support facilities for persons with disabilities,
etc., support will be provided for renovating private rooms, etc.
Through these efforts, the Government will firmly support medical and nursing care
professionals who continue to be at the forefront of the fight against the disease and arecommitted to their work.

 Emergency Comprehensive Support Grant for the Novel Coronavirus Disease (Medicalcare, nursing care, welfare for persons with disabilities, child welfare) (Ministry of Health,Labour and Welfare (hereafter MHLW)) Support for preventing the spread of infection, etc. to medical institutions, etc. including
medical institutions for treatment and inspection (MHLW) Special Measures on Medical Fees for Support to Pediatrics and Support for Transfer
of Patients Recovered from Novel Coronavirus Infection (MHLW) Expansion of G-MIS functions, etc. (MHLW) Project for Facilities Improvement of Hospitalized Medical Institutions for Patients with
the Novel Coronavirus Disease (MHLW) Improvement of the Medical Care Provision System at the National Hospital
Organization (MHLW) Support for renovation, etc. to convert foster care facilities, elderly care facilities,
support facilities for the disabled, etc. into private rooms (MHLW) Concessional (interest-free and no collateral)and other crisis response loans provided
by the Welfare and Medical Service Agency (WAM) for medical and welfare services(MHLW)
 Emergency Comprehensive Support Grant for the Novel Coronavirus Disease (MHLW) Subsidies to Medical Institutions, etc., that Add Workers' Accident Compensation
Benefits to Qualified Medical Practitioners, etc. (MHLW)

5 Gathering Medical Information System on COVID-19. An information system that unitarily grasps
information from medical institutions across the country and provides such information and support,
regarding the operation status of hospitals, the status of hospital beds and medical staff, and thestatus of securing medical equipment and materials.

7 Expansion of Support Project for Enhancement of Insurer Functions Related to Health
Insurance Societies (MHLW), etc.

2. Enhancing the Testing
Vaccination System(1)

SystemandDeveloping

Improvement of PCR 6 and Antigen-Detecting Test System

In addition to continuing to conduct administrative tests based on the Infectious
Diseases Control Law 7 , such as paying public expenses for insurance-applied out-ofpocket expenses for PCR tests, etc., the national government shall provide support forincreased and stable production 8 of antigen-detecting test kits, etc., so that necessary
tests can be certainly received. In addition, necessary support will be provided for the
improvement of PCR testing equipment at local institutes for health and inspection
agencies that carry out the inspection. At the same time, external quality control surveys
will be conducted to ensure the accuracy of PCR tests conducted at various locations,
including private inspection agencies.

 Implementation of PCR and Antigen Tests (MHLW) Purchase of Antigen Test Kits (MHLW) New Coronavirus Infection Emergency Comprehensive Support Grant (Medical Care)(MHLW) [Listed again] External Quality Control Survey for PCR Inspection, etc. (MHLW)(2)Development of Vaccination System and Therapeutic drugs, etc.

With regard to vaccines, the top priority will be to confirm their safety and effectiveness,and the Government aims secure enough vaccines to be provided to all citizens by the
first half of next year. In doing so, the Government will take all possible measures toimprove the vaccination system, such as providing subsidies for the expenses required forthe development of the system by local governments and having the vaccination expenses
borne by the national government, so that the people who wish to receive the vaccination
can receive without delay.

6

Polymerase Chain Reaction
Act on the Prevention of Infectious Diseases and Medical Care for Patients with Infectious
Diseases (Act No. 114 of 1998).
8 The ministry will request an increase in production based on the assumption that the Government
will buy surplus test kits.
7

8

With regard to pharmaceuticals developed in Japan and overseas, the Government will
make efforts to ensure the delivery of promising drugs to the public through the national
government's purchase of such pharmaceuticals while ensuring their safety. In addition,
the Government will continue to promote research and development to create innovative
pharmaceuticals and medical devices through industry-academia-government
collaboration.

 Project for Improvement of Vaccination System for the Novel Coronavirus Disease(MHLW)
 Expansion of the Emergency Improvement Fund for Vaccine Production Systems(MHLW)
 Project to Ensure the Safety of New Coronavirus Vaccines (MHLW) Project to Ensure the Quality and Safety of Biological Products Including Vaccines(MHLW)
 Securing Drugs for the Novel Coronavirus Disease (MHLW) Support for Costs Required for Clinical Trials of the Novel Coronavirus Treatment Drugs
and Pharmaceutical Applications (MHLW) Project for Urgent Investigation of Drugs for the Novel Coronavirus Disease (MHLW) Medical Research and Development Innovation Platform Creation Project (CiCLE 9 )(Cabinet Office (hereafter CAO)), etc.

3. Thorough Implementation of
Measures based on Knowledge

Infection

Prevention

In response to the recent spread of the disease, local governments, with the
involvement of the national Government, will request restaurants and other establishmentsthat provide alcoholic beverages to shorten their business hours, and will make payments
for the cooperation. In this case, local governments will get support for flexible responses
by using the "fund frame for promoting cooperation" provided in the Local Revitalization
Grant for the Novel Coronavirus Disease. The Government will firmly expand the subsidy(1.5 trillion yen), including by adding the said promotion fund frame, and support theexpenditure required for these economic measures and the effective, efficient and detailed
efforts by local governments responding to the actual conditions of each region to preventthe spread of the disease, etc.
In order to prevent the spread of the disease including nosocomial infections, the9Abbreviation of Cyclic Innovation for Clinical Empowerment.

9current temporary measures, that have been revised so that patients who wish to receive
medical treatment by online or telephone, and patient compliance instruction by online or
telephone can receive such services, will be steadily implemented until infection is
resolved, and support will be provided for the development of facilities related to online
diagnosis. In addition, the Government will promote the unification of highly needed
information, such as infection control measures and online responses at medical
institutions and pharmacies nationwide.
In order to strengthen the function of the control tower for the infectious disease
countermeasures, the system of the National Institute of Infectious Diseases andcooperation with the National Center for Global Health and Medicine will be strengthened.
Establishing a foundation for managing clinical and genomic information in an
integrated manner, the Government promotes research and development of new testing
methods and treatments. Furthermore, the Government will conduct surveys and research
for the early detection of the beginning of the spread of the disease using AI, etc. and theutilization of simulations for the spread and control of infection, etc., and utilize them forthe disease control. In addition, the Government will promote infection prevention
measures based on the past knowledge in every aspect of daily life.
All concerned parties will work together to ensure effective infection countermeasuresat the Olympic and Paralympic Games Tokyo 2020 next summer 10 . In addition, theGovernment will strengthen border control measures at airports by utilizing private
inspection agencies in order to respond to visitors to Japan, which is expected to increasein the future, and implement smooth and prompt customs clearance through non-contact
customs inspections.

 Expansion of Local Revitalization Grant for the Novel Coronavirus disease (CAO) Establishment of a Medical Information Website Foundation that Allows Users to
Search Hospitals and Other Information Nationwide (MHLW) Project for Establishing a System to Provide Functional Information on Pharmacies
Nationwide (MHLW) Telemedicine Facilities Improvement Project (MHLW) Project for Establishing a Unified Platform for Clinical Information, Genomes, etc. on
New Coronavirus Infections (MHLW) Enhancement of the Functions of the Information Gathering and Management Support
10

On the basis of the interim summary (December 2, 2020) of the Coordination Meeting for
COVID-19 Countermeasures at the Olympic and Paralympic Games Tokyo 2020 by the national
government, the Tokyo Metropolitan Government, and the Tokyo Organising Committee of the
Olympic and Paralympic Games, rigorous infection countermeasures shall be promoted for safe
and secure Games.

10System for Persons Infected with the Novel Coronavirus Disease (HER-SYS), etc.
(MHLW)
 Epidemiological survey of new coronavirus infections (MHLW) Research and Development on Promotion of Diagnosis,
Epidemiological Surveys of New Coronavirus Infection (MHLW)Treatmentand Project to Promote Public Awareness of Contact Confirmation Application COCOA, etc.
(Cabinet Secretariat (hereafter CAS)) Analysis of Infection Status through Various Data Analysis Using AI and Survey andResearch for Utilization of AI for Infection Control Measures (CAS)Support for measures against infectious diseases at daycare centers, kindergartens,
elementary schools, junior high schools, senior high schools, and special needs
education schools etc.(Ministry of Education, Culture, Sports, Science and Technology(hereafter MEXT), MHLW) Infectious Disease Control Project associated with the Postponement of the Olympic
and Paralympic Games Tokyo 2020 (MEXT and CAS)
 Strengthening of Measures against Infectious Diseases at Kyoto Congress, etc. (MOJ) Strengthening of Border Control Measures against New Coronavirus Infections(MHLW)
 Measures to Prevent the Spread of Infectious Diseases at Customs at the Border(Ministry of Finance (hereafter MOF))
 Supporting Measures to Prevent the Spread of Infection for Foreign Residents (Ministryof Justice (hereafter MOJ))
 Support for the Improvement of Educational Facilities for Training Medical Personnel
for Infectious Diseases (MEXT)
 Support for Japanese Nationals Residing Overseas and Japanese Descendants(Ministry of Foreign Affairs (hereafter MOFA)), etc.

4. International
Diseases

Cooperation

for

Containing

Infectious

In order to prevent the further spread of the novel coronavirus disease overseas andits influx into our country, the Government will continue to cooperate with internationalorganizations and others working in the field to support efforts to settle the spread of thedisease and improve medical systems and public health in developing countries. In orderto ensure equitable access to vaccines and therapeutics for early containment of thediseases in developing countries, comprehensive efforts will be promoted for the11

development, manufacture and procurement of vaccines and therapeutics. As part of thiseffort, the Government will further expand international cooperation, including throughsupporting a patent pool and promoting the supply of pharmaceutical so that therapeutics
that have been successfully developed can be mass-produced rapidly and can beprocured at low cost.

 Contributions to Gavi Vaccine Alliance (MOFA, MHLW) Contributions to CEPI 11 (MHLW) Support of a Patent Pool for Novel Coronavirus Pharmaceuticals and Promotion of
Procurement of Therapeutics through Unitaid (Contributions to Unitaid) (MOFA) Contributions to Global Fund to Fight AIDS, Tuberculosis and Malaria (Global Fund)(MOFA) Preventing Further COVID-19 Outbreaks through the Japan International Cooperation
Agency (JICA) (Expansion of "COVID-19 Crisis Response Emergency Support Loan
Program") (MOF) Preventing Further COVID-19 Outbreaks including through MDBs. 12 (MOF) Support for Research and Development of Pharmaceuticals for Infectious Diseases(Contributions to GHIT 13) (MOFA, MHLW) Comprehensive Program for improving infrastructure to promote clinical application of
innovative medical seeds (Promotion Program for implementing multi-regional clinical
trials) (MHLW), etc.

II. Promoting Structural Change andEconomic Cycle for Post-Corona Era

Virtuous

1. Realizing Digitalization and Green Society(1)Digitalization

This crisis caused by the novel coronavirus disease highlighted the problem of the delay
in digitization of administrative services, as evidenced by the difficulties in simple online
11

Coalition for Epidemic Preparedness Innovations.
International Monetary Fund, World Bank Group, Asian Development Bank, etc.
13 Global Health Innovative Technology Fund.
1212

application, confirmation, and payment procedures for some benefits and grants.
The Government will radically accelerate the digitization of administrative proceduresof the central government ministries, agencies, and offices, and will strongly support thereform of the digital infrastructure of local governments, such as standardization andcommonization of systems based on cloud computing in principle, as a multi-year initiative.
In order to promote the proliferation of My Number Cards at one stretch, which hold the
key to digital government, and to contribute to the further promotion of digitization in private
sectors, the Government will accelerate the development of technologies for upgrading
telecommunications networks, which are an important infrastructure for digitization.

(i)

Establishment of Digital Government

In order to digitize the administration of the central and local governments as a wholeand provide appropriate administrative services from the viewpoint of users, theGovernment will intensively expedite administrative procedures and make them online by,for example, implementing unified operation of systems between ministries and agencies.
With regard to information systems in local governments, the Government will make allout efforts to ensure that standardization and commonization based on cloud computing
will be realized within the next five years. In doing so, financial support will be provided ina form that enables local governments to advance digital reform systematically and stably
with predictability as a multi-year initiative 14.

 Promotion of Standardization and Commonization of Local Government Information
Systems (CAS, Ministry of Internal Affairs and Communications (hereafter MIC))
 Promoting Digitization of Local Governments (Support for Information Security
Measures) (MIC) System Improvement for Further Acceleration of Digitization of Administrative Services(MIC)
 Unification of Application System Functions (CAS) Acceleration and Expansion of Government Network Development Projects (CAS) Project to Establish the Base Registry 15 (CAS) Online Tax Payment, Registration, Passport Application, and Other Administrative
Procedures (CAO, Financial Services Agency (hereafter FSA), MIC, MOJ, MOFA, MOF,
14

A temporary fund will be established in the J-LIS (Japan Agency for Local Authority Information
Systems), and the status of the fund will be considered when the law is revised to strengthen thegovernance of the nation to the J-LIS.
15 "Base registry" refers to a database that is registered and disclosed by public organizations, etc.
and used in various situations as the basic data of society, such as people, corporations, land,buildings, qualifications, etc., and that serves as the basis of society in which accuracy and recency
are ensured.

13

MEXT, MHLW, Ministry of Agriculture, Forestry and Fisheries (hereafter MAFF),
Ministry of Land, Infrastructure, Transport and Tourism (hereafter MLIT), Ministry of theEnvironment (hereafter MOE), National Diet Library, Supreme Court, etc.), etc.

(ii)

Promotion of the Spread of My Number Cards and Their Further Utilization

The My Number card, which can be used to apply for various online procedures, is the
key to digitizing the administration. By the end of FY 2022, the Government aims to spreadthe system to almost all citizens, but the current diffusion rate is in the range of 20%, and
it is necessary to significantly accelerate the diffusion pace. To this end, the Government
will intensively promote the dissemination of "My Number cards" through the further useof "My Number Points" and integration with health insurance cards and drivers’ licenses.
At the same time, the Government will promote the utilization of My Number cards byappropriately connecting administrative procedures and systems.

 Expansion of the Number of People Eligible for Consumption Revitalization Measures
Using My Number Points 16 (MIC) System Development for Integrating Driver's Licenses and My Number Cards (National
Police Agency (hereafter NPA)) Dissemination of Acceptance Functions Using My Number Cards at Medical Institutions
and Pharmacies (MHLW) Strengthening Measures to Promote My Number Cards (MIC) Demonstration of My Number Card Functions toward their Installation in Smartphones,
etc. (MIC) Promotion of the Utilization of Information Coordination for Clerical Work with Unique
Use of My Number (CAO) Publicity of the My Number System toward its Dissemination Promotion (CAO) Enhancement of Mynaportal's Digital Infrastructure Functions (CAO) Project for System Improvement to Utilize Information on Medical Examination Results,
etc. in Coordination with My Number Information System (MHLW), etc.

16 The person who apply for the My Number card by the end of this fiscal year will become theobject of giving the My Number Point.

14

(iii)

Further Promotion of ICT in Education, Medical Care, Welfare, etc.

With the advent of the novel coronavirus disease, there is an increasing need for the
introduction of ICT and online education that can ensure the continuation of learning in theevent of an infection expansion. For this reason, online education is being implemented
as a special measure under the novel coronavirus disease. In addition to further enhancing
the content of the system as a mechanism suited to the digital age, with the developmentof the environment in which an online device is provided for each pupil during this fiscal
year at the compulsory education stage, ICT adoption and online use will be promoted ateach stage of education, including the high school stage, and new learning will be realized
through a hybrid of face-to-face instruction, and online and distance education suitable forthe digital society so that no one is left behind. With regard to online medical care andpatient compliance instruction, although temporary measures are being implemented fromthe viewpoint of preventing the spread of the novel coronavirus disease, as a system
suited to the digital age, based on safety and reliability and based on evidence, theGovernment will make it permanent, and continue to promote ICT, etc. to enhance
convenience in fields such as medical care and welfare, which are closely related to dailylife.

 Nationwide Development of Online Learning System (CBT 17 System) (MEXT)
 Promoting EdTech/STEAM Education (Program to Promote Collaboration between
Learning and Society) (Ministry of Economy, Trade and Industry (hereafter METI)) Implementation of“Smart DX Vocational High School (MEXT) Expansion of the GIGA School Concept (MEXT)
 Advancement of Universities and Technical Colleges Education by Digital Technology(MEXT)
 Establishing an ICT Environment for Kindergartens (MEXT)
 Promotion of ICT Use in Nursery Schools and Child Guidance Centers (MHLW) Further Enhancement of Online Education (MEXT) Making Online Medical Care and Patient Compliance Instruction Permanent (MHLW)

Establishment of NDB (National Database of Health Insurance Claims and Specific
Health Checkups of Japan) (MHLW)

Computerization Project of Home-visit Nursing Claims (MHLW) Addition of Systems and Functions for Utilizing Health Examination, Medical Care, andNursing care Information across Prefectures and Municipalities (MHLW), etc.
17

Abbreviation of Computer Based Testing.

15

(iv) Improvement of Environment for Development and Utilization of New
Technologies in the Digital Field
In order to realize a data-driven "super-smart society," it is necessary to havecommunication infrastructures that are more advanced than 5G, and can safely andreliably distribute extremely large amounts of information in any situation without delay. In
addition to strengthening the development and manufacture of post-5G and advanced
semiconductors with enhanced functions for multiple simultaneous connections and ultralow latency, the Government will accelerate and succeed the development of Beyond 5G,
a next-generation wireless communication technology that is expected to be introduced
around 2030 and will serve as the foundation of all industries and societies, ahead of othercountries, and aim to be deeply involved in the international standardization process. The
Government will actively support research and development in the digital field, includingthese innovative new technologies, and promote digitization in the fields of infrastructure,transportation, logistics, etc.

 Measures to Strengthen the Infrastructure of Post-5G Information and Communications
Systems (METI) Beyond 5G Research & Development Promotion Project (MIC) Promotion of Digital Reform Utilizing Government Assets (Development of 5G
Communication Network) (MOF) Digital Utilization Environment Creation Promotion Project (MIC) Establishment of an Integrated Intellectual and Human Resource Development
Infrastructure of Cybersecurity (MIC) Establishment of Research & Development Bases to Promote AI Strategies (MIC) Research and Development of Innovative Optical Network Technology for New Social
Infrastructure (MIC) Establishment of Verification Environment for Key Processing Device 18 for Satellite
Quantum Cryptographic Communication (MIC) Digitization of Community Development through Promoting Smart City and Promotionof Overseas Development of Smart City (MLIT) Smart City Promotion Project to Promote Data Collaboration (MIC) Promotion of the Super City Initiative (CAO) Strengthening the Science Information Network (SINET) as the Foundation for the Next
Generation of Research and Education (MEXT)

18

A device that generates and manages encryption keys and detects eavesdropping.

16 ICT International Competitiveness Enhancement Package Support Program (MIC) Promoting Digital Transformation 19 through the Development Bank of Japan<Including the Fiscal Investment and Loans> (MOF) Promoting Digital Transformation in the Fields of Infrastructure, Transport, Maritime
Industry 20 and Ports (MLIT) Taxation System to Promote Investments for Business Restructuring 21 (METI), etc.

(v)

Promoting Regulatory Reform toward Digital Reform

The Government will actively promote regulatory reforms that create value from theperspective of the people and society. In order to deal with various issues such as thedelay in digitization of administrative services revealed through coping with novel
coronavirus disease, the following regulatory reforms will be promoted to digitize the entire
society, in addition to those related to online medical care, patient compliance instruction
and online education.

 Review of Documents, Seals, and Face-to-Face Meetings (All Ministries, Agencies andOffices)
The necessity of documents, seals and face-to-face meetings shall be checked andreviewed for all administrative procedures. With regard to procedures between private
business operators, the Government will examine the necessity of regulations requiring
written documents, seals, or face-to-face meetings under laws and regulations, and will, if
necessary, reframe the procedures, introducing the digitization of receipts and various
documents related to contracts for leasing, buying, and selling real estate, etc.
If necessary, the government will submit to the next ordinary Diet session a bill to revise
the law, including a package of bills.
In addition, all administrative procedures will be brought online within five years, except
for those that, by their nature, are not appropriate to be done so. The online usage rate in
the fields where the number of procedures is particularly high and where there is highdemand from business operators are supposed to be intensively increased. The
Government will also do a review to the current methodology so that the use of cloud19

In addition to this, through the Development Bank of Japan, support will be provided for initiatives
to realize a green society, such as the utilization of renewable energy (Establishment of the "Green
Investment Promotion Fund"), as well as urban redevelopment and infrastructure development,such as electricity, that contribute to disaster prevention and mitigation, and national land’s
resilience.
20 For example, digital transformation of shipyards will be promoted to improve efficiency
throughout the life cycle of ships.
21 Discussed and concluded in the FY 2021 Tax Reform.

17

based digital signatures can be used for contracts that the national or local governmentsmake.

 Review of Exclusive and Resident Duties (MHLW)With the review of documents, seals, and face-to-face meetings, as well as the recent
advancement of ICT technology, it will become possible to review regulations for theappointment of specific persons and regulations requiring the personnel stationed
permanently at specific locations. Rationalization of requirements for concurrent servingof building environment and sanitation management engineers of specified buildings,
deregulation of requirements for on-site work and concurrent serving of industrial
physicians, and review of over-the-counter drug sales regulations, etc. will be
implemented.

 Dissemination and Promotion of Telework (MHLW)In order to promote and spread teleworking, we will review the "Guidelines for the
Appropriate Introduction and Implementation of Off-site Work Using Information andCommunication Technology" (by the MHLW on February 22, 2018), that provide
application and attention points of labor-related laws and regulations concerning telework
as well as points to be noted in personnel and labor management.

 Digital Transformation of Regulations (MEXT, MIC, and MHLW)
As part of the digital transformation of regulations, the Government will review the
copyright system so that rights can be processed smoothly at the same time whenbroadcasting programs are distributed on the Internet, and review the approval review
system based on the Pharmaceutical Affairs Law 22 to promote the development andintroduction of cutting-edge medical devices such as medical device programs.

 Development of System for Automated Delivery Robots (CAS, NPA, MLIT, and METI)
Based on the results of the demonstration tests on public roads, the basic policy of thesystem will be decided by next spring, and related bills will be submitted as soon as
possible in the next fiscal year, in order to enable services using a large number of lowspeed and small automatic delivery robots remotely.

22 Act on Securing Quality, Efficacy and Safety of Products Including Pharmaceuticals and Medical
Devices (Act No. 145 of 1960).

18

 Realization of Virtual General Meeting of Shareholders (METI, MOJ)
The government will submit related bills to the next ordinary Diet session so that avirtual general meeting of shareholders can be held for next year's shareholders meeting.

(2)

Realization of a green society

The challenge to reduce greenhouse gas emissions to net-zero, that is, to realize
carbon neutrality by 2050, is our country's "new growth strategy" and the Government will
make a big step forward in environmental investment in these economic measures in orderto realize a green society. The key is innovation. The Government will promote theimplementation of new technologies and research and development in the energy andindustrial fields, including SMEs, at an accelerated pace, while mobilizing all available
policies, such as conducting a comprehensive review of regulations concerning renewableenergy, etc., and taking bold steps to ease them, as well as considering the developmentof necessary systems including a cross-sectoral legal framework.
In addition, by shifting to "decarbonized society," "circular economy," and "decentralizedsociety," the Government will redesign the economy and society, create new demand, andreform the economy and society in order to realize green society. The Government will
also promote international cooperation on greening through international organizations.

(i)

Developing New Technologies for Carbon Neutrality

Toward the carbon neutral target by 2050, the Government will reform the energy sector
and change the structure of its manufacturing industry, given that energy-related CO2
accounts for about 85% of greenhouse gas emissions in our country. In particular, withregard to priority areas such as (1) electrification and the greening of electricity (Nextgeneration storage battery technology, etc.), (2) the realization of hydrogen society(Technology to supply and use large quantities of hydrogen to decarbonize the thermaland electric power fields), and (3) CO2 fixation and reuse (Carbon recycling using CO2 asa raw material or fuel, etc.), the Government will establish a fund of 2 trillion yen andcontinue to support companies' ambitious research and development activities over the
next 10 years, which show a commitment to specific target periods and targets, with theaim of establishing innovative technologies at an early stage and implementing them invarious fields such as power generation, steel manufacturing and chemical manufacturing,and the transportation sector such as automobiles. In addition to the above, theGovernment will actively support the practical application and research & development
efforts of various new technologies in the green field such as carbon recycling, CCUS 23
and renewable energy.

23 Abbreviation of Carbon Dioxide Capture, Utilization and Storage. To separate carbon dioxide
discharged from factories from other gases and store and effectively use it.

19 Funding Project to Provide Continuous Support for Innovative Technology
Development toward Carbon Neutrality (METI) Development Project of Bio-derived Product Production Technology to Accelerate
Realization of Carbon Recycling (METI)
 Promotion of Carbon Neutrality in Maritime 24 and Port Areas (MLIT)
 Project for Technological Advancement for Verifying Emissions from the Greenhouse
Gas Observation Satellites (MOE), etc.

(ii)

Changing the Lifestyles of the People to Realize Green Society

From the viewpoint of consumption of goods and services, household consumption
accounts for about 60% of greenhouse gas emissions in our country, and it is necessary
to change people's lifestyles in order to realize green society. The Government will also
implement socioeconomic reforms, such as creating a "decarbonized area" with net zeroCO2 emissions. To this end, the Government will promote "decarbonization of mobility"
through the spread of electrified vehicles such as electric vehicles and fuel cell vehicles
that are green and resistant to disasters, and "decarbonization of houses, etc." throughthe support of thermal insulation renovation, etc., in order to shift to a decarbonized
lifestyle. The Government will also realize the mainstreaming of local renewable energy inzero-carbon cities through the spread of independent and distributed energy. In addition,
Japan will make contributions internationally to a greener world through the Japan Bankfor International Cooperation (JBIC) and international organizations.

 Promote the Spread of Electric Vehicles and Fuel-cell Vehicles in Combination with theIntroduction of Renewable Electricity and Charge-discharge Facilities that Can Supply
Electricity in Times of Disaster (METI, MOE).
 Tax System 25 to Promote Decarbonization Investment by Enterprises (METI) Thermal Insulation Reform and ZEH 26 Support Project for Houses (MOE) Promotion of the Spread of Wooden Houses with High Energy-saving Performance24

For example, in order to make a fundamental shift from petroleum fuels to hydrogen and othergaseous fuels in the future, the Government will establish state-of-the-art production methods forvarious types of gas-fueled ships.
25 Discussed and concluded in the FY 2021 Tax Reform.
26 Abbreviation of Net Zero Energy House. A house is to achieve around zero balance of annual
primary energy consumption by introducing renewable energy, etc., after realizing substantial
energy conservation while maintaining comfortable living environment through the introduction ofhighly efficient equipment systems, as well as significantly improving the thermal insulation
performance of the housing shell.

20

toward the Realization of a Decarbonized Society <Including the Fiscal Investment andLoans> (MLIT)
 Green Housing Point System (MLIT)
 Project to Promote Decarbonization and Resilience of Buildings, etc., Including Support
for the Introduction of High-performance Ventilation Systems, etc. 27 (MOE) Project for Promoting Regional Mainstreaming of Renewable Energy andStrengthening of Resilience through On-site PPA 28 for Realizing a Green Society(MOE) Project to Promote the Introduction of Advanced Resource Recycling Facilities for theConstruction of a Decarbonized Society (MOE) Program to Promote the Introduction of High-efficiency Heat Pumps in the Industrial
and Operational Sectors (METI)
 Program for the Promotion of Compensation for the Introduction of Advanced Low
Carbon Equipment (METI) Measures for Livestock Biomass for Local Consumption (MAFF)
 Realization of a Green Society through Forest Maintenance and Increased
Consumption of Wood Products (MAFF)
 Formulation of Indo-Pacific Initiative for Decarbonization of the LNG Value Chain(METI)
 Support for Japanese Companies’ Overseas Business Activities toward a
Decarbonized Society, etc. through JBIC ("Post-COVID-19 Growth Facility (tentativename) 29") (MOF) Survey and Research on Integrated Regional Development of Offshore Wind Power(METI)
 Support for the Achievement of a Decarbonized Society through Contributions to theUnited Nations Framework Convention on Climate Change Secretariat (UNFCCC)(MOFA), etc.

27

Specifically, this refers to equipment that can ventilate while maintaining room temperature by
simultaneously exchanging heat between outside air and inside air during air intake and exhaust.
28 Abbreviation of Power Purchase Agreement. In this case, the term refers to a direct contract forthe sale of electric power between power consumers (Companies, etc.) who provide places toinstall self-consuming solar panels and use the electricity, and power producers.
29 Reorganized "Growth Investment Facility" established in January 2020. Funding will be provided
including through the Foreign Exchange Fund Special Account to support the overseas
development of quality infrastructure toward a decarbonized society, as well as the strengtheningof supply chain’s resilience.

21

2. Enhancing Productivity through Economic Structural
Changes and Innovation(1)

Supporting Business-Style Changes of SMEs and Re-Building Businesses ofFirms

The Government will strongly encourage SMEs, which serve as the base of local
economies by generating more than 50% of added value and 70% of employment, tocontinue business, transform business-type, develop new business fields, and transformmanagement-style towards the post-corona era, not for the purpose of eliminating them,but for aiming at increasing of their productivity and raising wages of labor on a continual
basis. Efforts will continue to be made to improve the environment for raising minimum
wages.
The Government will establish a new subsidy scheme for business restructuring for
SMEs that are seeking to respond to changes in the economy and society under the
influence of the novel coronavirus disease. The subsidy up to 100 million yen for the capital
investment expenses for facilities, etc. will be granted to SMEs for their efforts indeveloping new business or converting business type/industry 30 or enterprises who plan
to expand the business scale through the restructuring.
As funding supports for SMEs in improving and transforming their business, theGovernment ensures that the concessional (interest-free and without collaterals) loans
through private financial institutions are available until the end of March next year and thatthose loans offered by public financial institutions such as the Japan Finance Corporation
will continue until the first half of next year for the time being, taking into account theinfection situation and funding conditions. 31 In particular, the Government encourages
financial institutions to provide flexible and attentive funding support to SMEs toward theend of the year and the fiscal year. For positive investments by business owners withstronger growth orientation, the Government will continue to provide prioritized support for
their introduction of IT tools that allows employees to work from home, etc., and theirinvestment in infection prevention measures that contribute to balance the infection control
and economic activities. Due to the impact of the disease increasing numbers of business

30 For example, we assume cases where a restaurant whose sales decreased due to the novel
coronavirus disease has introduced new services accepting orders on line or offering home delivery
and take-out services while shrinking its existing services and saving costs by reducing the capacity
to accommodate guests and kitchen facilities, or cases where a manufacturer which decided toenter the medical device field taking advantage of its own technology has newly made investments
to procure necessary facilities for such purpose while shrinking and abolishing its conventional
business and equipment.
31 In addition, the Government will promote to support the management improvement, businessrestructuring or conversion of SMEs, etc. by making use of funds or capital loans offered by the
Regional Economy Vitalization Corporation of Japan (REVIC) or other institutions as well as
exerting efforts in strengthening the collaboration and sharing know-how between local support
organizations and financial institutions.

22are closing or suspending their business. The Government will take all possible measures
to tackle this situation by expansion of consultation systems for SMEs, development ofsystems related to business succession and revitalization support including utilization ofexperts at the time of business succession, and support for new challenges thereafter. 32
In order to revitalize local public transport operators facing severe business conditions
and to ensure their business continuity, the Government will provide intensive support for
their use of new technologies, such as the introduction of air purifiers with highperformance filters, and for their efforts to improve the financial performance throughcooperation with tourism operators.
By promoting the establishment of partnerships between large enterprises and SMEs,
which enables SMEs and small enterprises to pass on the fair cost to product prices, theGovernment will ensure that the fruits of business activities will be distributed in an
appropriate balance so that SMEs and small enterprises can keep profits.
For companies that intend to make bold investments in business restructuring andreorganization, the Government will consider to give tax incentives 33 such as raising theupper limit on the deduction of operating loss carryforwards for a certain period. At thesame time, the Government will promote regulatory reform that enables businessdevelopment in response to changes in demand caused by the novel coronavirus disease.
Furthermore, looking ahead to the post-corona world, the Government will review thescope of permissible activities of banks so that financial institutions can engage in a wide
range of businesses that contribute to build a sustainable economy including digitalization
and regional revitalization. In addition, along with “Special Deposit Facility to Enhance the
Resilience of the Regional Financial System” that the Bank of Japan is considering, theGovernment will establish a scheme to grant funds for regional financial institutions thatwill drastically improve their business efficiency through measures such as mergers andthe establishment of a joint holding company, in order to maintain financial intermediaryfunctions in depopulated areas.

 Establishment of business restructuring subsidies (METI) Extension of concessional loans through private financial institutions and measures for
new credit guarantee system for SMEs’ efforts in improving management, etc. (MOF,
METI, and FSA)
 Continuation of concessional loans through the Japan Finance Corporation, etc. andexpansion of loan system for SMEs' business transformation, etc. (MOF, METI, MHLW,
and CAO) SME productivity revolution promotion project (Special scheme) (METI)
32 Including promotion of application of special provisions under the “Guidelines for Personal
Guarantee Provided by Business Owners.”
33 Discussed and concluded in the FY 2021 Tax Reform.

23 One-stop comprehensive support project for SMEs and small enterprises (METI)
 Promotion of business succession and transfer (METI) Strengthening the functions of the SME Business Rehabilitation Support Co-operative(METI)
 Revitalizing and continuing local public transportation with a view to the post-coronaera (MLIT) Taxation system to promote investments for business restructuring 34 (METI) [Listed
again] Taxation system for concentration of management resources 35 (METI)
 Promotion of joint transportation and non-face-to-face delivery to improve logistics
efficiency (MLIT) Smooth transition to the new system in conjunction with simplification of procedures
concerning special measures for relaxation of road occupancy permission standards
for restaurants, etc. (NPA and MLIT)
 Review of regulations on the scope of permissible activities of banks and establishmentof a fund granting scheme (FSA) Support for SMEs and small enterprises to raise minimum wages (MHLW), etc.

(2)

Promoting Innovation

Amidst the resurgence of the disease, European countries are shifting their focus to“aggressive” economic measures to accelerate innovation that will drive growth in the postcorona world, including the digital and green sectors. In Japan, keeping up to this trend,
the Government will drastically strengthen our research base, which will generate
discontinuous innovation that will lead to improved productivity and quality of life, not onlyin the fields of digital and green technology, but also in the fields of space, ocean, AI,
quantum technology, genome, biology, and materials, etc.
In particular, the Government will establish University Fund with a scale of 10 trillion
yen 36 and apply gains resulting from the investment of the fund to develop common
facilities and data linkage infrastructure for universities that conduct research anddevelopment on a world-class level and to foster young human resources such as doctoral
students, thereby building our country's innovation ecosystem. 37 In selecting universities
34

Discussed and concluded in the FY 2021 Tax Reform.
Discussed and concluded in the FY 2021 Tax Reform.
36 The Government will strive to promptly realize a fund with a scale of 10 trillion yen, while taking
into account the institutional design of university reform, etc.
37 This is a system like an ecosystem in which each player relates to each other and autonomously
35

24

that are eligible for participating in the fund, the Government will require applicant
universities to commit themselves to university reforms, such as autonomous
management, responsible governance, and increasing efforts to acquire external funds,
as well as to make contribution to the fund, while reviewing existing related projects. 38 For
the time being, this fund will be financed by national funds, including fiscal loan funds, andwill gradually require more financial contribution from participating universities and theprivate sector. The goal is that the participating universities will manage the fund with theirown financial resources in the future. Contribution of the fiscal loan funds should betentative to promote the independence of the fund. They should be repaid in a timely
manner, taking into account the impact on the market. For this, a mechanism to ensure
safe and efficient management and stable redemption of the fund 39 will be established.
While developing cutting-edge research infrastructure at national universities andpublic research institutes, the Government will support universities improving thetreatment of doctoral students and securing their career paths in an integrated manner. In
addition, it will create an environment in which young researchers can devote themselves
to research, and expand the number of researchers eligible for the support system(Emergent Research Support) for up to 10 years. In order to enhance international
competitiveness, the Government will formulate a strategy for promoting the use ofstandards for products and services in priority fields that should be tackled acrossministries and agencies, and will guide the policies of each ministry and agency.

 Creation of University Fund to build a world-class research infrastructure <including the
fiscal investment and loan program> (CAO and MEXT) R&D contributing to the international space exploration "Artemis Program" (MEXT)
 Inter-ministerial R&D project to promote space development and utilization (CAO) Development of the supercomputer "Fugaku" (MEXT)
 Digital transformation of the research environments 40 (MEXT) Establishment of facilities and equipment for the quantum life science research center(MEXT)
 Promotion of the next-generation synchrotron radiation facility through a public-private
accelerates the creation of innovation.
38 For choosing eligible universities, the Government will discuss necessary institutional reform andget a conclusion.
39 Based on the purpose of timely disclosure, the Government will build a system to verify the status
of investment at an appropriate frequency, and if the status of investment falls below a certain level
for a certain period of time, take necessary measures, such as providing for mandatory review on
the investment in a law, including the suspension of investment and early redemption.
40 Realization of remote and smart research facilities, etc., development of advanced material
research infrastructure (data creation), etc., construction and strengthening of data andcomputation sharing infrastructure in the field of ocean and disaster prevention, promotion ofstrengthening research universities, etc.

25

regional partnership (MEXT) Establishment of R&D bases to promote AI strategies (MIC) [Listed again]
 Development and demonstration project of the smart farming technology (MAFF)
 Realization of the genomic analysis of 100,000 human genome through public-private
cooperation (MEXT) Establishment of a system for promotion of genomic medicine through whole genome
sequencing analysis, etc. (MHLW) Platform project for supporting drug discovery and life science research (MEXT) Development of open innovation bases for prioritized industry technologies (METI) Maintaining and strengthening the innovation ecosystem
entrepreneurship education and creating startups, etc. (MEXT)

byexpanding Development of the cutting-edge research infrastructure and related base facilities atnational universities (MEXT)
 Preparation for establishment of university fellowships towards the creation of science
technology innovation (MEXT) Expansion of the number of personnel eligible for the emergent research support
program (MEXT)
 Formulation, etc. of strategies for promoting use of standards (CAO) Funding project to provide continuous support for innovative technology development
toward carbon neutrality (METI) [Listed again], etc.

(3)

Making Supply Chains Resilient and Improving International Competitiveness(i)

Improving the Effectiveness of Supply-Chain Resilience

Based on the fact that the novel coronavirus disease has exposed supply chain
vulnerabilities in our county, such as disruptions in the supply of products whose
manufacturing base has concentrated overseas, necessary support will be continued tostrengthen our supply chain resilience domestically and overseas. In doing so, theGovernment will give more focused support, such as reviewing the requirements for
subsidies. Specifically, the support will focus on capital investments which will contributein increasing the domestic production or in diversifying their overseas manufacturingbases for important products and materials that would suffer significant risk if their supply
chain were disrupted and essential goods for healthy lives of the people.
In addition, from the perspective of improving the supply-chain resilience andproductivity, the Government will promote the development of access roads to airports andports and the reinforcement of the functions of the international container hub ports.
26 Subsidies for promoting domestic investments to strengthen supply chains (METI) Support for stable supply of pharmaceuticals (MHLW)Program for strengthening overseas supply chains(METI) Support for Japanese companies’ strengthening supply chain resilience, etc. through
JBIC ("Post-COVID-19 Growth Facility (tentative name)") (MOF) [Listed again]
 Program for the stabilization of international food and input markets (MAFF)
 Promotion, etc. of the development of road networks and ports that contribute tostrengthening the resilience of supply chains and improving the productivity oflogistics 41 (MLIT), etc.

(ii)

Incorporating Overseas Vitality such as Promotion of Foreign Direct
Investment in Japan

Foreign direct investment in Japan contribute to the improvement of our economic
productivity through the acquisition of superior foreign technologies and know-how, andalso leads to the continuous expansion of employment and income. While giving due
consideration to economic security, the Government will put the following measures inpractice as soon as possible, prior to the formulation of the medium to long term strategy
including concrete KPIs and schedules to be formulated within this fiscal year, in order tofurther promote foreign direct investments.
Specifically, in order to accelerate an attractive innovation ecosystem using ourcountry's technology and R&D capabilities, the Government will establish and operate an
open innovation platform (J-Bridge Initiative) within this fiscal year with the aim of matching
and collaborating between domestic and foreign companies in important fields such as
digital and green technologies and businesses. Upon deciding the important fields, theGovernment will also support base cities 42 that promote creation of startups in formulating
business plans for the overseas expansion of domestic startups, attracting investment
from overseas investors and companies, matching with experts, and facilitatingpromotional activities. In addition, based on the efforts toward the realization of the global
financial center to be mentioned later, the Government will accelerate the development ofbusiness and living environments for people working and living there by introducing an
online system and support in English for corporate establishment procedures and securing
41Including the extension of the measures for large transaction and frequent users discount on

expressway tolls.
Base cities for the startup ecosystem under “Beyond Limits. Unlock Our Potential. –Strategies
for Creation of Startup Ecosystem to Compete with the World Top Ecosystems–” implemented by
the CAO; Four (4) Global Start-up Cities (Tokyo area, Nagoya/Hamamatsu, Kansai area, andFukuoka) and four (4) Start-up Cities (Sapporo, Sendai, Hiroshima, and Kitakyushu).
42

27

a sense of security and safety for the life such as medicine, health, education, andemployment, including anti-infection measures for foreigners. At the same time, theGovernment will also develop an environment for accepting investment taking advantage
of tourism resources and other regional resources.
In addition, in order to capture demand in overseas growth markets, mainly in Asia, andto strengthen the competitiveness of domestic industries through economic partnershipagreements, etc., the Government will provide support for overseas expansion throughtrans-boundary EC markets, as well as for the development of sales channels and thecreation of new businesses by enterprises engaging in overseas expansion.

 Support for overseas expansion of SMEs (J-Bridge Initiative through the JETRO andreinforcement of the support system centering on "Consortium for a New Export Nation") (METI) Program for acceleration of the foreign direct investment in Japan (Support for Creationof Startup Ecosystem Cities) (CAO) Support for the creation of new businesses such as Asia DX (METI)
 Promotion of the digitalization and IT introduction in legal administration (MOJ) [Listed
again]
 Promotion of the digitalization of tax procedures (MOF) [Listed again] Supporting Measures to Prevent the Spread of Infection for Foreign Residents (MOJ)[Listed again] Telephone interpretation service for consultation and reception facilities for patients withnovel coronavirus infections (MHLW) Promotion of multilingual employment support for foreign nationals (MHLW) Support for overseas development of content and strengthening of the content
infrastructure (METI), etc.

(iii)

Realization of “Japan as a Global Financial Center” (Finance Place Japan)

While Japan, as a financial business center, offers advantages in terms of good public
security, a favorable living environment, and business potential with household assets
worth more than 1.9 quadrillion yen, it still faces challenges in attracting global investors
and businesses to its market as well as promoting linguistic and social diversity. Taking
advantage of lessons learned from the successful inbound tourism campaign, theGovernment intends to make a breakthrough in the financial sector, mainly in the asset
28

management business sector, with the aim of making Japan an attractive place for foreign
nationals to do business in addition to a tourism destination. The Government intends tostrategically reform financial and capital markets to make them more attractive for foreignbusinesses and highly-skilled professionals, thereby realizing “Japan as a global financial
center” (Finance Place Japan).
In particular, the Government will remove regulatory and taxation bottlenecks 43 ,enhance the attractiveness 44 of financial and capital markets, and carry out corporate
governance reform in order to make it easier for foreign businesses and professionals who
are already engaged in asset management business 45 overseas to conduct the same kindof business in Japan. The national and local governments, and private sectors will jointly
collaborate to provide seamless consultative support for foreign nationals intending toconduct asset management businesses in Japan, mainly in terms of establishingcorporations, commencing businesses, and settling in and establishing secure livelihoods.
The Government also cooperates with local authorities and private sectors to makeEnglish communication available in supporting newly entering foreign asset managementcompanies and others in terms of pre-application consultation, registration, supervisionand others, and to relax requirements for obtaining status of residence and expand
incentives. Moreover, the Government enhances information sharing in respect of multilingual services related to livelihoods, laws, accounting, education, real estate, medicine,and others, so that the foreign nationals may consider Japan as an anxiety-free "choicelocation" for conducting business as part of potential market entrants' global business
schemes.

43

Bottlenecks of regulations and taxation were assessed and concluded to be lifted in
anticipation of the enforcement of the 2021 Tax Reform
44
Key initiatives to enhance the attractiveness of financial and capital markets are as follows:market re-classification of the Tokyo Stock Exchange (TSE) (starting April 2022); formulation of
measures to prevent the recurrence of system failures; expansion of the product line on theComprehensive Exchange; commencement of holiday trading on the Osaka Exchange; review of"best-execution policy" for order execution on exchanges and private trading systems; review ofregulations for firewalls between banking and securities businesses; improvement of theenvironment for issuing security token offerings (STO); elasticity in eligibility requirements for
professional investors toward their trade activation; issuance of shares by unlisted companies
and revitalization of secondary markets; smooth supply of funds (facilitation of financing) throughVC- and PE-funds; digitalization/streamlining of financial institutions’ regulatory reporting, etc.
45
Business operators who are engaged in investment management business, investment
advisory and agency business, Type II financial instruments business, and foreign businesses
that manage mainly foreign funds that are permitted to enter under the special provisions newly
set forth29Preparation of a special provision that grants market entrance by foreign businesses
managing mainly foreign funds with simplified entry procedures (FSA)

Revision of the Corporate Governance Code to encourage companies 1) improve thequality and quantity of independent directors and 2) to ensure diversity through thepromotion of women, foreign nationals, mid-career hires; and to promote timely andappropriate corporate disclosure (FSA)

Improvement of the attractiveness of financial and capital markets (FSA)

Establishment of a "Support Network for Startups in the Financial Sector" jointly run
by the public and the private sectors (FSA)Communication in English with applicants as new foreign asset managementcompanies and others in terms of registration and supervision (FSA)Special provision to eligibility requirements for status of residence 46, the introductionof bonus points for highly-skilled foreign professionals, the relaxation of employment
requirements for foreign domestic workers, and the improvement of convenience forworking spouses (MOJ)

Promoting the availability of financial administrative services in English through theuse of AI multilingual translation technology and by translating remaining financerelated laws and regulations (FSA, MIC and MOJ)

Broadening the scope of borrowers to asset management companies and others
under the credit guarantee system and Japan Finance Corporation, etc. (FSA, MOF
and CAO)

Further enhancement information sharing and surveying issues pertaining tolivelihoods, including multi-lingual professionals 47 , healthcare, housing, andinternational schools (FSA, MOJ, MIC, MOF, MHLW, MLIT, MOFA and MEXT)

Utilization of subsidies granted to the local governments providing support to foreign
financial businesses according to the respective needs of the businesses (CAO), etc.

46

Implement a special measure (exception) for the granting of status of residence so that abusiness operator can commence business after entering the country with the status of residenceof "temporary visitor" without having to return home47
Attorneys at law, judicial scriveners, certified administrative procedures legal specialists, andtax accountants involved in supporting start-ups

30

3. Realizing Virtuous Economic Cycles Led by Private
Demand in Regions, Society and Employment(1)

Regional Revitalization including Encouraging People to Go to Regional
Areas

The consumption of the Tokyo metropolitan area and the three prefectures (Kanagawa,Chiba and Saitama) accounts for only 30% of the nation's total. It is essential to boost local
income and stimulate local consumption for the Japanese economy to return to a growth
path led by private demand. To this end, the Government will encourage people to visit
rural areas and revitalize the regions, while steadily developing the infrastructure that
supports the movement of people, by supporting tourism, arts and culture, sports, andother activities and by promoting the unique efforts of local communities.

(i)

Recovery in Domestic tourism Demand

Tourism-related industries, which employ about 9 million people nationwide, are thebase supporting local economies. In order to overcome the crisis caused by the novel
coronavirus disease, to encourage people to visit rural areas, and to protect regional
economies, the Government will aim to recover lost travel demand by focusing on
domestic tourism, which accounts for about 80% of travel consumption in Japan, whilefurther ensuring that measures to prevent the spread of the disease are put in place. The
Government will continue to appropriately promote the Go To Campaign (Travel, Eats,
Events, Shopping District), using the reserve funds against the novel coronavirus disease
and taking measures to prevent the spread of infection, while promptly making up for thecurrent budget shortfall in Go To Travel and flexibly responding to the infection situation.
With regard to the Go To Travel program, for example, the Government will giveconsideration to businesses and regions facing sluggish recovery of tourism demand,
while taking measures to distribute tourism demand on weekdays. The Government will
also review and extend the Go To Travel program in stages until the end of June next year
in principle, and will respond to it flexibly based on the infection situation. As for the Go To
Eat program, meal coupons with a reduced premium effective until the end of June next
year will be additionally issued. In order to revitalize tourism bases and further enhancetheir attractiveness and profitability, the Government will provide short-term intensive
support for improving management capabilities through renovation of accommodation
facilities, restaurants, souvenir shops, etc., as well as dispatching experts. In addition, theGovernment will promote support for improving tourism resources through cooperation
between different industries in the region, and develop an environment for accepting longstay tours and Workation (Work + vacation) at National Parks and hot spring resorts by
utilizing digital technology. In addition, landing fees of national airports paid by airlines will
be reduced.
31

In anticipation of the resumption of international traffic in the future, the Government
will support enhancement of the functions of key airports and the development of facilities
to minimize the risk of infection at airports. At the same time, the Government will promote
the development of the reception environment including measures to prevent the spreadof the disease in public transportation and accommodation facilities, and promote
initiatives for gradual recovery of inbound traffic, while taking into account the situation of
infection in Japan and overseas.

 Go To Campaign (Travel, Eat, Event, Shopping District) (CAS, MLIT, MAFF, and METI)
 Project to revitalize and add value to existing tourism sites (MLIT)
 Promotion of intra-regional cooperation by improving regional tourism resources (MLIT)
 Promotion of long-stay tours and Workation (Work + vacation) in National Parks andhot spring resorts (MOE) Presentation, etc. of Q&As on work-related accidents and tax treatment whenintroducing the “Workation (Work + vacation)” scheme (MLIT)
 Reduction of landing fees, etc. for maintaining the air flight networks (MLIT)
 Support for improving reception environments at airport (MLIT)
 Promotion of enhanced airport functions <Fiscal investment and loan program> (MLIT)
 Promotion of initiatives to attract visitors to the National Ainu Museum and Park
(Upopoy) (MLIT)
 Urgent measures to improve the environment for receiving foreign tourists to Japan(MLIT)
 Promotion of visit of tourists to the specific inhabited remote national border islands(CAO), etc.

(ii)

Support for Unique Regional initiatives, such as Generating New Flow ofPeopleWith the outbreak of the novel coronavirus disease, the attractiveness of rural areas
has been reevaluated, and the flow of people from urban to rural areas has been created
not only by tourism but also by strong promotion of migration and settlement to rural areas,
etc. The Government will support the development of satellite offices by utilizing new
grants and the fiscal investment and loan program for local governments, and promoteteleworking at regional areas by matching the needs of enterprises and local governments.
In order to create the flow of people from large enterprises to regional SMEs and small
enterprises and to support the securing of management personnel at regional enterprises,32the Government will promote human resource matching by regional financial institutions
through the human resource list managed by REVIC. It will promote regional development
in disadvantaged areas. In addition, as various issues have become apparent due to thedisease, the Government will actively support independent efforts by local governments
to promote women's empowerment and take measures against the declining birthrate inaccordance with local circumstances, while establishing KPIs.
In addition to preventing the spread of the novel coronavirus disease, the Government
will increase Local Revitalization Grant for the Novel Coronavirus disease and support thenecessary expenditures associated with the economic measures and effective, efficientand detailed efforts by local governments in accordance with local conditions, with regard
to the transformation of the economic structure toward post-corona times and therealization of a virtuous cycle.

 Grants and programs for promoting teleworking for regional revitalization (CAO) Support for the development of satellite offices utilizing government assets(MOF)

 Support for the development of teleworking bases, etc. to support new ways of working
and living (MLIT)
 Review of the "Guidelines for the Appropriate Introduction and Implementation of Offsite Work Using Information and Communication Technology" (by MIHW on February
22, 2018) to promote and spread teleworking (MHLW) [Listed again]
 Program to promote matching of local business management personnel (FSA) Program for matching of leading human resources (CAO) Subsidy for the development of regional revitalization bases (CAO) Program to enhance the dissemination of local information through broadcasting
contents (MIC) Measures for promoting the development in disadvantaged areas (MLIT)

Support for unique efforts of local communities through budget for specified projects
on Okinawa-promotion (CAO) Green housing point system (MLIT) [Listed again]
 Grants to promote women’s participation and advancement in local communities (CAO) Promotion of measures against the declining birthrate in accordance with local
circumstances and challenges (Support for marriage and new life) (CAO) Expansion of special grants for regional revitalization to respond to the novel
coronavirus infections (CAO) [Listed again], etc.

33

(iii)

Support for Cultural, Artistic and Sports Activities

Amid a prolonged impact by the novel coronavirus disease, the Government willcontinue to support cultural, artistic and sports activities and encourage the flow of people
to rural areas, thereby revitalizing local communities.
The Government will also help cultural, artistic or sports-related organizations andcultural facilities that have been forced to refrain from activities due to the disease, in
conducting activities in response to "new routine" such as infection control measures atcultural facilities, enhancement of online contents, and live distribution, and will makeefforts to discover and foster profit opportunities, and to contribute to profitability and thesustainability of activities by a wide range of stakeholders.

 Support for enhancement of cultural and artistic activities to overcome the Corona
pandemic (MEXT)
 Projects for expanding the anti-infection measures at cultural facilities and improving
environment to support activities (MEXT)
 Strengthening the functions of national cultural facilities (MEXT) Japan Expo Innovation Project (MEXT)
 Comprehensive package for children's cultural and artistic appreciation andexperiences (MEXT)
 New lifestyle support project for the inheritance of regional intangible cultural heritage(MEXT)
 Support for exhibitions utilizing cultural assets associated with the region (MEXT)
 Promotion of global demand creation for contents (METI) Support for holding national sports events toward the post-corona era (MEXT)
 Project for the promotion of public-private partnerships for encouraging children toexercise and play on a regular basis (MEXT), etc.

(iv) Developing Infrastructure to Support Private Demand-Led Growth in Local
Communities
Under the idea of the wise spending, the Government will promote, intensively and withpriority, infrastructure projects that have significant positive effects, such as encouraging
private demand, creating diverse exchange and activities by securing comfortable public
spaces such as pedestrian and bicycle lanes, raising the competitiveness of local key
industries, and improving productivity, while making use of the methods of the fiscal
investment and loan program.
34

 Development of urban infrastructure serving as a base of the economic growth (MLIT) Regional revitalization through urban parks, etc. (MLIT) Urban renaissance and promotion of the private urban developmental investment<Fiscal investment and loan program> (MLIT) Port and harbor development that contributes to the industrial revitalization and job
creation, etc. (MLIT), etc.

(2)

Employment Package to Facilitate Workers to Move smoothly to Growing
Sectors

Aiming to balance preventing the spread of infection and socioeconomic activities, theGovernment will continue to work to maintain and secure employment through special
measures for employment adjustment subsidies and other measures. In addition, theGovernment will comprehensively implement an employment measures package, with aview to securing employment by shift of business type and other ways, including support
for the smooth movement of labor to new fields through secondment and early reemployment, improvement of an environment in which workers can learn while working,reinforcement of recurrent education, and expansion of support for job seekers, so thateach person can work with satisfaction while fully demonstrating their abilities.
The Government will flexibly deal with special measures for the Employment
Adjustment Subsidies and other measures, taking into account the infection status andemployment situation. As for the employment adjustment subsidies, it is basicallyassumed that the current measures will be extended until the end of February next year,
gradually reduced from March, and then from May to June, made to the special measurewith the same level as during the financial crisis. Specifically, monitoring the infection
status and employment situation as of the end of January and the end of March, and if theemployment situation is significantly deteriorated due to a sharp increase in the numberof the furloughed and the unemployed, the Government will take special measures for theregions where the infection is spreading and for the firms with particularly severe businessconditions.
Moreover, in addition to continuing to provide support to an assignor firm throughEmployment Adjustment Subsidies and to an accepting firm through Labor Movement
Support Subsidies, the Government will establish a new subsidy program for both assignor
and assignee firms and strengthen a matching system of the Industrial Employment
Stabilization Center. In addition, through the active use of career consulting and consulting
for business change and other matters, support will be provided to prefectural efforts topromote re-employment involving shifts across business and job types.
In addition to strengthening education and training for IT human resources and IT
utilization human resources in response to the digital age, the Government will support35

business operators in providing training costs for employees who are needed for theoperators to switch to other business types and improve the usability of the educational
training leave system. From the viewpoint of securing employment in the field of nursing
care, employment support will be provided through a combination of vocational training,
workplace experience and loans for employment support (forgivable) after completion oftraining.
Given that the novel coronavirus disease are largely affecting vulnerable people, suchas non-regular employees and women, the Government will establish a wage subsidy
program for business owners who employ workers on a trial basis for a certain period oftime in order to support early re-employment of those who have left their jobs due to such
effects and wish to work in jobs without work experience. At the same time, theGovernment will promote the conversion of such workers into regular employees throughemployment placement dispatching. In addition, the Government will continue to promote
the active labor participation of women through the realization of diverse and flexible
working styles that correspond to their life stages, and implement active recruitment andother measures at public employment security offices to meet the needs of women raisingchildren. In addition, in order to prevent the creation of a second employment ice age
generation amid the severe employment environment for new graduates and otherpersons, the Government will promote matching with SMEs that are willing to hire newgraduates and those who have graduated within three years, and strengthen thecounseling support system at public employment security offices and other places tosupport new graduates.

 Extension and review of special measures for employment adjustment subsidies andother measures (MHLW) Establishment of an integrated subsidy program for assignor and assignee businessowners (Industrial employment stability subsidy (tentative name)) (MHLW) Expansion of the structure of the Industrial Employment Stabilization Center of Japan(MHLW)
 Support for prefectural efforts to promote re-employment involving shifts acrossbusiness and job types (MHLW) Review of courses subject to education and training benefits in response to changing
needs (MHLW) Support of shifts to other business types by human resources development support
subsidies, relaxation of requirements for long term education and training leave grantcourses, and enhancement of IT human resource development support (MHLW) Employment support for unemployed workers in the nursing care field throughcollaboration between employment and welfare (MHLW) Subsidies to business owners who hire those who have left their jobs due to the effects36

of infectious diseases on a trial basis (Trial employment subsidies) (MHLW) Expansion of the scope of subsidy to business owners at dispatch destinations who
work on the conversion of workers into regular employees through employment
placement dispatching (Career advancement subsidy) (MHLW) Securing job openings for women and other persons raising children that enable themto balance work and family life (MHLW) Strengthening employment support for new graduates and graduates within three years
at new graduates support Hello Work and other programs (MHLW) Establishment of specialized services for support measures for the employment ice age
generation and implementation of team support (MHLW) Promotion of multilingual employment support for foreign nationals (MHLW) [Listed
again], etc.

(3)

Revitalizing the Agriculture, Forestry and Fisheries by Further Expanding
Exports

Following the entry into force of the TPP 11 Agreement, the Japan-EU EPA, and theJapan-US Trade Agreement, and the signing of the Japan-UK Comprehensive Economic
Partnership Agreement and the Regional Comprehensive Economic Partnership (RCEP)
Agreement, Japan's overseas market will be further expanded. Taking full advantage ofthis opportunity, the Government will make every effort to strengthen the production baseand export capacity in accordance with the "Comprehensive TPP Related Policy
Framework" 48 in order to further increase exports of agriculture, forestry and fisheries
products and food aiming to achieve the five trillion yen target for 2030 and also fully
support agriculture, forestry and fisheries workers affected by the novel coronavirus
disease.

(i)Strengthening Production Base and Export Capacity to Further Expand
Exports

The Government will provide comprehensive support to production areas that aresystematically working to enhance profitability, and strengthen the production base bypromoting livestock clusters. In order to expand the range of production areas andincrease the number of business operators engaged in export, the Government will
support efforts in response to issues such as product categories under the GFP 49 (Global
Farmers, Fishermen, Foresters, Food Manufacturers Project). At the same time, the48

Decided by the Cabinet Secretariat The Government Headquarters for the TPP on December 8,
2020.
49 Abbreviation of Global Farmers / Fishermen / Foresters / Food Manufacturers Project.

37

Government will strengthen export capabilities, including support for the strengthening ofoverseas sales capabilities for priority products and target countries/regions through thejoint efforts of the public and private sectors, and the development of an export
environment to overcome export impediments. In addition, in response to the declining
demand for staple food rice, the Government will support the planting of new high-profit
crops and the establishment of processing and manufacturing facilities in order to create
new demand.

 Local production base power-up project (MAFF)
 Promoting livestock cluster project and grassland development to support livestock
clusters (MAFF)
 Promotion of further large compartmentalization and generalization of farmland (MAFF)
 Promoting the conversion of paddy fields to upland fields and the enhancement of thefunctions of upland fields and tree orchards (MAFF)
 Paddy field renovation project for developing new markets (MAFF)
 Project for emergency measures to create global production base (MAFF)
 Emergency measures to support overseas demand creation (MAFF)
 Development of facilities for HACCP 50 and other standards for food industry exports(MAFF)
 Development of facilities for exporting agricultural and livestock products and promotionof consortiums for exporting livestock products (MAFF)
 Strengthening international competitiveness of plywood, lumber and laminated woodand promoting exports (MAFF)
 Emergency program to enhance competitiveness of the fisheries industry, project for
emergency measures to expand fishery products export (MAFF)
 Emergency project to reconstruct overseas food value chain (MAFF)


Project to promote the export expansion strategy of Japanese liquor, etc. (MOF), etc.

50

Abbreviation of Hazard Analysis and Critical Control Point. A method of sanitation managementin which food business operators, after understanding the hazard factors (Hazard) such as
contamination by food poisoning bacteria or contamination by foreign substances, manage
processes that are particularly important for removing or reducing such hazard factors in allprocesses from the arrival of raw materials to the shipment of products, and ensure the safety of
products.

38

(ii)

Support for Business Continuity in Light of the Impact of Novel Coronavirus
DiseaseThe Government will provide necessary support for business continuity to agriculture,
forestry, fishery, and other workers affected by the novel coronavirus disease, as well as
continue to provide measures for labor shortage, and support diversification of sales
channels for agriculture, forestry and fishery products, and other matters.

 Business continuation subsidy (MAFF)
 Grant to support the next production of high-profit crops (MAFF)
 Measures to support capacity building of forestry management bodies (MAFF)
 Project to stabilize fisheries income, project to equalize the supply of specific fisheryproducts (MAFF)
 Emergency support project to secure labor force in agriculture and fisheries (MAFF)
 Project for emergency measures to diversify the sales channels forforestry, fishery, and other products (MAFF)

agriculture,, etc.

(4)

Supporting Household and Private Demand(i)Supporting the Livelihoods of Households, Reducing Economic Burdens,
Stimulating Demand, and Other Measures

In order to support households that financially suffer from the impact of the novel
coronavirus disease, the Government will extend the deadline for applications for special
measures for emergency small loans and comprehensive support funds until the end of
March next year, and also the period of payment of housing security benefits to a
maximum of 12 months only for those who newly applied within FY 2020. In addition tostrengthening the function of the support for the independence of the needy, a grant willbe established to comprehensively support the efforts of prefectures and otherorganizations such as strengthening a suicide prevention counseling service. The
Government will strengthen the support for single-parent households through theconstruction and strengthening of the counseling system. Furthermore, the Government
will reissue temporary special benefits for single-parent households (basic benefit) for
single-parent households with low income within the year by utilizing reserve funds. The
Government will enhance the financial support to students in need and the awareness ofscholarship loans repayment support. From the perspective of supporting livelihoods andemployment, the Government will also support the financing of SMEs.
Although private consumption continues to recover, its level remains low, particularly inservice consumption, and housing investment remains sluggish, partly due to the effects
39

of the novel coronavirus disease. In addition to efforts to maintain and secure employment
and improve productivity, as well as various measures to stimulate consumption, theGovernment will consider taking tax measures 51 to encourage income growth, such asincreasing employment and wages. And, in order to effectively stimulate demand forstagnant housing investment, immediate support measures such as tax 52 and point
systems will be implemented from the perspective of dealing with post-corona issues suchas telecommuting, migration to rural areas, and decarbonization.
In order to reduce mobile phone charges, which account for about 4% of the householdburden, the Government will strongly promote efforts to develop a fair competitiveenvironment in the mobile phone market, including the facilitation of transfers among
mobile phone operators.
The Government will tackle countermeasures to the falling birthrate, which has been aproblem for many years and move it forward significantly. In order to steadily promote themovement toward the elimination of children on waiting lists, the Government will continue
to promote the development of facilities for child care. Also, regarding the subsidy fortreatment expenses for those suffering from infertility, the Government will, looking ahead
to medical insurance coverage from FY 2022, abolish the income restriction, and raise theupper limit of the subsidy on the premise of the expansion of the coverage to reduce theeconomic burden. The maximum amount of the subsidy is 300 thousand yen for one timefrom the second time onward for up to six times, and the same is for the second andsubsequent children. In addition, economic support will be promoted for patients withrecurrent pregnancy loss, and pediatric and AYA 53 patient with cancer and other disease.
Furthermore, the Government will promote continuous support from pregnancy to childcare through the postpartum care project.

 Extension of special measures such as emergency small loans (MHLW) Extension of the period of payment of housing security benefits (MHLW) Financial support for municipalities that have conducted reduction and exemption ofnational health insurance premiums (MHLW) Establishment of the new coronavirus infectious diseases safety net enhancement
grant (tentative name) (MHLW) Support for lowering rent for safety-net housing (MLIT)
 Project to strengthen the monitoring of children subject to support (MHLW) Project to strengthen the counseling system for single-parent and other families(MHLW)

51

Discussed and concluded in the FY 2021 Tax Reform.
Discussed and concluded in the FY 2021 Tax Reform.
53 Abbreviation of Adolescent and Young Adult. Adolescents and young adults
5240

 Temporary special benefits for single-parent households (MHLW) Financial support for high school students (MEXT) Three-year extension of the burden adjustment measures for fixed asset taxes on landand other measures depending on economic conditions 54 (MLIT) Tax system that encourages income growth such as increasing employment andwages 55 (METI) Tax measures such as tax cut for housing loans 56 (MLIT)
 Green housing point system (MLIT) [Listed again] Thermal insulation remodeling and Net Zero Energy House project for houses (MOE)[Listed again] Housing market stabilization project (Residence benefit) (MLIT)
 Expansion of childcare acceptance capacity(MHLW) Special treatment support project for those suffering from infertility (MHLW) Funding support through private financial institutions, the Japan Finance Corporation,and other organizations (MOF, METI, FSA, MHLW, and CAO ) [Listed again]
 Debt consolidation support utilizing "Special Provisions of the Natural Disaster Debt
Consolidation Guidelines" (Established in October 2020) (FSA), etc.

(ii)

Support for the Employment Ice Age Generation

For the employment ice age generation, the Government will make every effort toimprove the job support system by further expanding the specialized services of public
employment security offices, which will be the pillar of the accompanying support thatprovides consistent support from counseling and employment to settlement.
The Government will strongly support advanced and proactive efforts in local
communities in cooperation with relevant parties, such as support for employment andsettlement, holding joint briefings and matching seminars, with grants for accelerating
support for the local employment ice age generations.
Utilizing the national public officials mid-career recruitment examination (employment
ice age generation), the existing recruitment of experienced personnel, and otherrecruitments, the Government will intensively implement the mid-career recruitment of
national public officials by the end of FY 2022. With regard to mid-career recruitment oflocal officials, the Government will promote efforts such as the expansion of mid-career
54

Discussed and concluded in the FY 2021 Tax Reform.
Discussed and concluded in the FY 2021 Tax Reform.
56 Discussed and concluded in the FY 2021 Tax Reform.
55

41

recruitment examinations in line with the actual conditions of each local governments.
In addition, the Government will promote counseling support by socially withdrawn
people and used-to-be socially withdrawn people for those who need support for social
participation.
Including the measures mentioned above, by the end of the year, the Government willconsider strengthening support measures tailored to the circumstances of each and every
person of the employment ice age generation, and will revise the "Action Plan to Support
the Employment Ice Age Generation." Support for advanced and proactive efforts for the employment ice age generation in
local communities (CAO) Measures to accelerate the securing of new farmers (MAFF)
 Establishment of specialized services for support measures for the employment ice age
generation and implementation of team support (MHLW) [Listed again]
 Promotion of mid-career recruitment of national public employees (CAS), etc.

42

III. Ensuring Safety and Security by Promoting
Disaster Prevention and Mitigation and National
Resilience
1. Promotion of Disaster Prevention and Mitigation andNational Resilience
Severe and frequent storms and floods due to the climate change, and imminent largescale earthquake disasters such as the Nankai Megathrust Earthquake are indeed crisesthat “when happen is unknown." The promotion of disaster prevention and mitigation, andnational resilience, which contribute to the protection of people's lives and property andthe construction of a foundation for sustainable growth, remains an urgent issue. Moreover,the infrastructure that was intensively developed after the high economic growth period isdeteriorating, and there is a concern that if these infrastructures are damaged in disasters,
our country's administration and socioeconomic system will malfunction. During the five
years from the next fiscal year to FY 2025, the Government will implement flexible andelastic responses in line with the situations of occasional natural disasters, and will compilethe "Five-Year Acceleration Measures for Disaster Prevention, Disaster Mitigation, andNational Resilience (tentative name)." The main pillars of these measures arecountermeasures against severe wind and flood damage and massive earthquakes,
acceleration of measures against the infrastructure deterioration through preventive
maintenance, and promotion of digitization. The additional project scale for measures
which need to be particularly accelerated and deepened will aim to amount toapproximately 15 trillion yen, and for the projects in the first fiscal year, the costs will becovered in the FY 2020 3rd supplementary budget.
The Government will promote the development of national land that does not succumb
to disasters by carrying out the measures in disaster prevention and mitigation andnational resilience in an integrated manner beyond the boundaries of the government
ministries and agencies, the central and local governments, and the public and private
sectors. In response to natural disasters, the Government will take measures to preventand minimize damage to the people’s lives and property, such as the promotion of "River
Basin Disaster Resilience and Sustainability by All" through cooperation between
government ministries and agencies and the public and private sectors, maintaintransportation networks and lifelines, and take measures to support the economy and thepeople's livelihoods. At the same time, the Government will accelerate measures against
deteriorating infrastructure in order to shift to preventive maintenance of infrastructure. At
the same time, in order to smoothly and efficiently promote national resilience, theGovernment will make strong efforts to promote digitization such as in i-Construction,
improve rainfall prediction accuracy, and implement digital transformation in disasterprevention.
43

In addition, "the supplementary budget bonds" will be utilized by local governments
to reduce their additional burden associated with public works projects and other projects
under these economic measures and to facilitate public investment in the region. Whenplacing orders for public works projects, in order to ensure smooth construction and topromote work-style reform of the construction industry, the Government will make efforts
to implement appropriate estimates and setting of construction period, equalize theconstruction period.

 Promotion of "River Basin Disaster Resilience and Sustainability by All" throughcooperation between government ministries and agencies and the public and private
sectors considering climate change (Improvement of rivers, sewage, erosion control,
coasts, forests and afforestation, agricultural irrigation facilities, and other facilities,
improvement of the storage function of paddy fields, implementation of preliminarydischarge of dams, development of flood control basin and storage facilities utilizing
national land, too) (MOF, MAFF and MLIT) Seismic reinforcement and tsunami countermeasures of houses, buildings, schools,
and fishing ports in anticipation of the Nankai Megathrust Earthquake and the Tokyo
Metropolitan Earthquake (MEXT, MAFF and MLIT)
 Strengthening disaster resistance of disaster prevention bases and evacuation facilities
including hospitals, public facilities, school facilities, and correctional facilities, social
welfare facilities, and other facilities (MOJ, MEXT, MHLW, METI and MLIT)
 Ensuring the police's ability to respond to disasters by improving equipment andmaterials (NPA) Development of materials and equipment, and promotion of digitization which arenecessary to strengthen the capabilities in fire service and disaster management (MIC) Strengthening the disaster response capabilities of the Self Defense Force (hereafterSDF) and infrastructure (Ministry of Defense (hereafter MOD)) Multiplexing and upgrading of transmission means for disaster information(CAO, MIC,
and MLIT)

Provision of missing links on High-standard highway networks, expansion of somehighway sections from the current 2 lanes to 4 lanes, disaster prevention measures
for the National Highways under jurisdiction of MLIT , to allow rapid passage after adisaster, <Including the fiscal investment and loan program> (MLIT)

Local measures for road infrastructure which include burying electric cables
underground (MLIT)

 Strengthening the disaster resilience of land, sea and air networks (Railways, ports,
sea routes, airports, and other facilities) (MLIT)
 Strengthening the disaster resilience of lifelines such as water supply and sewerage
44systems, petroleum products, and information and communications (MIC, MHLW, METI,
and MLIT) Development and renewal of Municipal solid waste disposal facilities that will also serve
as disaster response bases (MOE) Free provision of government assets to local governments prior to the disaster (MOF) Measures against deterioration of critical infrastructures such as rivers, dams, roads,
railways, airports, ports, reservoirs, agricultural water facilities, and schools (MEXT,
MAFF and MLIT)
 Promotion of digitization, including development and management of infrastructure
utilizing 3D models, camera images, and other technologies (MLIT) Enhancement of GNSS earth observation network system for reliable monitoring ofcrustal deformation (MLIT)

Measures to upgrade meteorological data for disaster mitigation, such as improving
the accuracy of forecasts for heavy rain due to stationary linear mesoscale convective
systems, typhoons, and other reasons (MLIT)

 Strengthening disaster prevention functions of Quasi-Zenith Satellite System,
accelerating its development, and other matters (CAO) Promotion of digitizing disaster response, including the disaster victim support system(CAO) Consideration of local evacuation methods in light of infectious diseases and of
measures against infectious diseases at shelters (CAO), etc.

2. Acceleration of Rehabilitation and Restoration fromNatural Disasters
The Government will continue to make all-out efforts to reconstruct, rehabilitate, andrestore the livelihoods and businesses of the victims of natural disasters such as thetorrential rains in July 2020. The Government will encourage the reconstruction of
livelihoods of disaster victims through the reconstruction and repair of public housing, thereduction and exemption of the burden on the users of daycare centers and other facilities,
reduction and exemption of co-payment for medical and long-term care insurances, debt
consolidation support 57 , and other measures. Support will also be provided for thereconstruction of business through subsidies, etc. for the rehabilitation of facilities for small
and medium-sized and other firms which are under severe conditions due to the impact of

57 Utilization of "Guidelines for Debt Consolidation of Victims of Natural Disasters" (Established in
December 2015)45

the novel coronavirus disease. The Government will also promptly and fully recoverdamaged infrastructure and public facilities such as schools.

 Disaster recovery of public housing (MLIT)
 Support for reducing and exempting the burden on the users of daycare centers,
admission facilities for children, and other facilities (CAO and MHLW) Financial support for reduction and exemption of co-payment for medical and long-termcare insurances (MHLW) Occupation reconstruction support project (METI) Disaster recovery of infrastructure such as rivers, roads, and railways (MLIT)
 Disaster recovery of facilities for agriculture, forestry and fisheries (MAFF)
 Disaster recovery of school facilities and cultural properties (MEXT), etc.

3. Ensuring the Safety and Relief of the People
In addition to disaster prevention and mitigation, building national resilience, anddisaster rehabilitation and restoration efforts, the Government will steadily advance efforts
to ensure the safety and relief of the people in various fields including national security.
The Government will work to ensure the stable operation of the SDF, construct thestrategic coast guard system, and develop information-gathering satellites to strengthen
crisis management. The Government will advance easily accessible public transportation,
including railways, and continue to support the purchase of safety support cars that
contribute to traffic safety measures for elderly drivers 58 . The Government will also
strengthen consumer protection against cross-border electronic commerce troubles andmislabeling, which are increasing under new coronavirus infections.
The Government will promote the "Life safety education" 59 and strengthen thecounseling and support system for victims of spousal violence, sexual crimes, sexualassault which are becoming more serious amid the protracted situation of the novel
coronavirus disease. In addition, factors related to the rapid increase in female suicides
after the summer will be analyzed and responses will be considered.
In addition, the Government will ensure the payment of benefits to the victims of specifichepatitis B virus infection and their heirs.

58 The subsidies for safety support cars in the FY 2019 supplementary budget will be carried overto fiscal 2021.
59 Education to lean the importance of lives, not to become a perpetrator of sexual crimes andassault, not to become a victim, and not to become a spectator.

46

 Ensuring the SDF’s stable operational readiness (MOD) Construction of the strategic coast guard system (MLIT)
 Support for fishers affected by illegal operations of foreign fishing vessels (MAFF)
 Development of information-gathering satellites to strengthen crisis management(CAS) Promotion of barrier-free local public transportation and railway stations (MLIT) Grant to strengthen local consumer administration (Consumer Affairs Agency (hereafter
CAA))
 Strengthening the counseling and other systems for cross-border consumer problems(CAA)
 Strengthening counseling and support for victims of spousal violence (CAO)Strengthening counseling and support systems for victims of sexual crimes, sexualassault (CAO) Measure for prompt control of serious pests (MAFF)
 Improvement of measures to relieve victims of automobile accidents (MLIT) Grant for operational costs to provide benefits for those infected with specific hepatitis
B virus (MHLW) Clarification of the procedure that dispatched ambulances are allowed to takeexpressways free of charge when returning to fire stations after operation (MLIT and
MIC) Clarification of regulations related to accommodation of truck drivers during disasters(MLIT), etc.

IV. Timely and Appropriate Execution of Reserve
Funds for Measures against the Novel Coronavirus
diseaseIn light of the current impact of the spread of the novel coronavirus disease, theGovernment will promptly and flexibly respond to necessary expenses incurred due to
unexpected shortages resulting from the spread of infection through the timely andappropriate execution of the "Reserve Fund for the Novel Coronavirus Disease."
47

Attachment

Scale of the measures(Financial
Expenditure)(Project Scale)I.

Containment Measures for the Novel
Coronavirus Disease

Approximately
5.9 trillion yen

Approximately
6.0 trillion yen

II.

Promoting Structural Change and Virtuous
Economic Cycle for Post-Corona Era

Approximately
18.4 trillion yen

Approximately
51.7 trillion yen

III. Ensuring Safety and Relief by Promoting
Disaster Prevention and Mitigation and National
Resilience

Approximately
5.6 trillion yen

Approximately
5.9 trillion yen

IV. Timely and Appropriate Execution of Reserve Funds for Measuresagainst the Novel coronavirus disease(FY 2020)

Approximately
5.0 trillion yen

Approximately
5.0 trillion yen(FY 2021)

Approximately
5.0 trillion yen

Approximately
5.0 trillion yen

Approximately
40.0 trillion yen

Approximately
73.6 trillion yen

Total

48

(Reference) Breakdown of Financial Expenditure(Financial
Expenditure)

National and Local
Government
Expenditures

Fiscal Investment
and Loan Program(FILP)

I. Containment Measures for
the Novel Coronavirus
DiseaseApproximately
5.9 trillion yen

Approximately
4.5 trillion yen

Approximately
1.4 trillion yen

II. Promoting Structural
Change and Virtuous
Economic Cycle for PostCorona Era

Approximately
18.4 trillion yen

Approximately
13.4 trillion yen

Approximately
5.0 trillion yen

III. Ensuring Safety and Relief
by Promoting Disaster
Prevention and Mitigation
and National Resilience

Approximately
5.6 trillion yen

Approximately
4.4 trillion yen

Approximately
1.3 trillion yen(FY 2020)

Approximately
5.0 trillion yen

Approximately
5.0 trillion yen－(FY 2021)

Approximately
5.0 trillion yen

Approximately
5.0 trillion yen－

Approximately
40.0 trillion yen

Approximately
32.3 trillion yen

Approximately
7.7 trillion yen(Note 1)

(Note 2)

IV. Timely and Appropriate
Execution of Reserve
Funds for Measuresagainst the Novel
Coronavirus Disease

Total(Note 1) The national budget is 30.6 trillion yen, of which the third supplementary budget for FY 2020
is 20.1 trillion yen (General account: 19.2 trillion yen, special account: 1.0 trillion yen).
(Note 2) The additional amount in the FY 2020 third supplementary budget is 1.4 trillion yen.

49