Outline of Economic Measures for Realization of Virtuous Cycles (December 5th 2013, Cabinet decision)[Provisional Translation by Cabinet Office]Basic Concept

 These measures constitute part of the “Economic policy package” adopted by the Cabinet on October 1, 2013.
 The government will promptly execute these five trillion yen-scale measures to securely pave the way to ending deflation and revitalizing the economy in conjunction with one
trillion yen-scale taxation measures, and others incorporated in the package.
(Principles) Focus is placed on measures that will take effect during the first half of FY2014 in order to moderate rush demand and recoil reduction associated with the planned hike in theconsumption tax rate.
 These measures are aimed not only at mitigating the recoil reduction in demand but also at ensuring a rapid return to a solid economic growth path by focusing on the measuresthat are highly effective in inducing private-sector demand such as consumption and capital investment and promoting innovations, thereby leading to the investment for thefuture, with a view to enhancing economic growth potential and achieving sustainable economic growth.

Specific Measures(1) Strengthening systems to address large-scale disasters
II. Policies for women, young people, the elderly
andthedisabled(2)
Improving social infrastructure resilience to reflect
I. Measures to strengthen competitiveness1.
Encouragementofwomen’sparticipation,
supportforspecificityof the local economy
1. Promotion of investments, creation of innovations, andchild-rearing,
andcountermeasuresfordeclining
birthrateothers(3) Enhancing earthquake resistance of school facilities(1) Encouraging women’s participation(1) Promoting capital investment, and other measures(4) Enhancing nuclear accident response and nuclear
which lead to strengthened competitiveness(2) Child-rearing support and countermeasures fordisaster control measuresdecliningbirthrate(2) Advancing technological innovations and development(5) Recovery from natural disasters such as typhoons(3) Facilitating business development in overseas markets 2. Support for the fulfillment of young people’s capacities,
3. Realization of a safe and secure society
and employment measures(4) Strengthening financial functions, and reviewing the(1) Ensuring well-maintained public security
3. Support for the elderly and the disabledmanagement of public and semi-public funds(2) Ensuring a sense of security
2. Measures to save energy costs(3) Crisis management
III. Acceleration of measures for reconstruction,
3. Improvement of urban infrastructure in view of the Tokyo
disaster prevention and safety2020 Summer Olympics and Paralympics
1. Recovery/Reconstruction of areas damaged by the Great IV. Measures for reducing impacts on low-income(1) Strengthening transportation and distribution networks
East Japan Earthquake
earners and child-rearing households and(2) Preparing Olympic and Paralympics facilities
moderating the rush demand and recoil(1) Revival of Fukushima
reduction
4. Vitalization of communities, agriculture, forestry and(2) Community development through reconstruction
fisheries industries, and small and medium-sized(3) Restoring the industries
enterprises
V. Realization of economic virtuous cycles(4) Supporting people in areas affected by disasters(1) Regional and community development(5) Compensating for the reductions of tax revenue ear(2) Vitalization of the agriculture, forestry and fisheriesmarked for reconstruction
VI. Execution of economic measuresindustries(1) Prompt execution of the economic measures
2. Improvement of the nation’s resilience, acceleration of(3) Innovation in small and medium-sized enterprises, anddisaster prevention/mitigation and addressing aging(2) Monitoring of their progress
small-scale businesses
infrastructure, and enhancement of nuclear accident
response and nuclear disaster control measures（Annex）
Economic Impacts (preliminary estimate) Expected impact on real GDP is approximately 1%.
 Impact on job creation is approximately 250 thousand.
 The economic measures for enhancing potential growth, in conjunction with the efforts for realization of virtuous cycles of the economy and one
trillion yen-scale taxation measures in the “Economic policy package”, will stimulate business investment and consumption and enhance
productivity, leading to economic growth accompanied by higher income and more jobs.

Financial Size

[Trillion yen (Approximately)]
Central Government
Expenditure

Total Size

I. Measures to strengthen competitiveness

1.4

13.1

II. Policies for women, young people, the elderly and the disabled

0.3

0.4

III. Acceleration of measures for reconstruction, disaster prevention and safety

3.1

4.5

1. Recovery/Reconstruction of areas damaged by the Great East Japan Earthquake

(1.9)

(2.4)

2. Improvement of the nation’s resilience, acceleration of disaster prevention/mitigation
efforts and others, realization of a safe and secure society

(1.2)

(2.1)

IV. Measures for reducing impacts on low-income earners and child-rearing households andmoderating the rush demand and recoil reduction

0.6

0.6

Total amount

5.5

18.6

Note: Besides the indicated items, increase of tax allocations to local governments (1.2 trillion yen), obligatory assurance of nationalsubsidization for a multiyear construction project (0.3 trillion yen) and fiscal investment and loan programes (0.1 trillion yen) are
included in total amount.