time, the restriction is maintained on current spending on goods and services, which declines by 14 %. 6 / 9 as regards public investment, real investment is projected to increase by 23 %, with respect to the initial budget for 2016. however when the effect of certain defence - related payments outstanding from other years is taken into account, state investment is budgeted to fall by almost 20 %, which is accompanied by a significant reduction in business investment in the public sector. turning to the social security system, the increase of 0. 25 % in pensions, arising from application of the indexation formula in force following the 2013 reform, is notable. the projected growth in expenditure on contributory pensions in 2017 is rather higher ( 3. 1 % ), as a result of the projected increase in the number of pensions and the substitution effect arising from the new pensions that replace those that are terminated, so that the weight of expenditure on pensions in total consolidated state and social security expenditure increases to 40. 7 % ( as against 38. 5 % in 2016 ). also, the reduction in expenditure on unemployment benefits, of 7 %, should be noted. this is explained by the fall in unemployment and in the coverage rate of contributory benefits. on the revenue side, the main measures included in the draft budget are those that were approved on 2 december 2016 in royal decree - law 3 / 2016. notable among them is the amendment to corporate income tax in order to widen the tax base. as regards vat, limits are placed on the conditions for granting deferrals, and a new system is set up for immediate supply of information. as for excise duties, the rates on alcoholic drinks and tobacco products are raised. in the case of social security system revenues, an increase in the maximum contribution base of 3 % was approved in the above - mentioned royal decreelaw. overall, tax revenues, before the transfer to local and regional government, are projected to increase by 7. 8 % in 2017, while social contributions are projected to increase by 6. 3 %, which, given the macroeconomic forecasts and the impact of the tax reforms mentioned above, would entail a greater response by revenues to growth in activity than in the past, especially in the case of social contributions, which are projected to grow by more than their bases ( employment and wages ), even taking into account the effect on revenues of the legal changes mentioned above. if the uncertainties surrounding the estimates of the impact of the legislative changes

masaru hayami : the role of japan amid the changing international financial environment speech by mr masaru hayami, governor of the bank of japan, at the executive board of directors ’ meeting of the japan foreign trade council, held in tokyo, on 7 june 2000. * 1. * * introduction thank you for inviting me to the 263rd executive board of directors ’ meeting. it is a great pleasure to have this opportunity to address such a distinguished audience. it also brings back memories of my days as one of the council ’ s executive directors and vice chairman under chairman mimura. your invitation today allows me to be here again, for the first time in almost ten years since i left the council to become chairman of the japan association of corporate executives. knowing that many of you come from trading companies which are active globally, today i ’ d like to share my ideas from the viewpoint of the role of japan amid the changing international financial environment. 2. tensions generated by globalization having previously worked for the bank of japan for 34 years, i had a chance to work in the then foreign department, our london office and other positions related to the bank ’ s international activities. it was a great experience for me to attend important international meetings such as the bis and the then g5 meetings. then, two years ago, i returned to the bank of japan as governor. now, representing the bank, i have a chance to again take part in various international meetings. attending such meetings, i have noticed two things. first, the number of international meetings has multiplied over the years. in this context, of particular note is that the presence of emerging - market countries, particularly the asian economies, has also increased. one reason for this is somewhat paradoxical in that since the asian currency crises of 1997, there is a consensus that the economic and financial stability of emerging - market economies is crucial for global economic and financial stability. indeed, the rise in the number of international meetings and participants evidences the extent to which economies are becoming globalized. the second thing i have noticed is that various kinds of tensions have arisen as the market economy has become more globalized. i clearly recall ngo activists surrounding the wto ’ s ministerial conference in seattle last december. the imfc meeting, which i attended in late april on the day after the g7 meeting, was also the target of similar protests. how can it be that the imf, a pivotal contributor to the development of the liberalized market economy after