The sales tax is scheduled to rise from 5 percent to 8 percent by April next year, and then to 10 percent by October of 2015. Abe has cited concerns that it will affect the economy negatively and so will be observing the conditions until autumn of this year when he will make a decision. But Aso said that delaying the increase would break their commitment to the G20 group of developed and developing nations that Japan would fix its financial situation that has been struggling for the past decade. The government announced that for the third straight month, they are upgrading the view on the economy because deflation has been slowly easing and because of the massive monetary fiscal stimulus, there has been continuous growth.
Japan needs to raise sales tax next year: Finance Minister
for such spending, the committee only set aside NIS 100m. this time around. With only four months left in 2013, there were fewer chances of wild miscalculations. In earlier budget negotiations, Prime Minister Binyamin Netanyahu tapped the adjustment budget to rescue the Defense Ministry from spending cuts. Looking forward, the committee set the annual growth rate as the limit for how much budget spending could increase each year.
Finance c’tee readies NIS 400b. budget for Knesset approval
First-quarter data showed Japan was the fastest-growing major economy in the world. Abe has indicated he would decide on the tax rise in autumn. Aso said the final decision should be based on revised April-June GDP figures released in September, rather than preliminary data due on August 12. A government report on the long-term fiscal outlook said reforms were essential to maintain market confidence and ensure a sustainable recovery.