Yasutoshi Nishimura, senior vice minister for fiscal policy and economics, said that Japan must embrace new and solid growth measures to help the economy endure an upcoming consumption tax increase and other red ink reduction efforts.
The senior Japanese official said, "We need to consider (the) risk that the fiscal condition could deteriorate if the economy is not robust enough to absorb the negative impact of tax increases. So we'll implement a growth strategy to make the economy resilient to any shocks."
The Japanese government will make its decision in September where of not its economy is resilient enough to meet the great demands and strong impact of a consumption tax increase. A tax increase approval will go into effect in April 2014, if the government decides to.
"Conditions will be improving quite well from second quarter, so I think the consumption tax will be raised as of next April," he continued.
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