S/ Masuda Hiroya, Fiscal System Council member / To enable adequate responses to emergencies that could occur in the future, securing sufficient fiscal capacity is an urgent task.

The Fiscal System Council, an advisory body to the finance minister, compiled opinions including calls for urgently securing fiscal space in response to uncertain external factors such as the Trump tariffs.

The body submitted the opinions to the Finance Ministry on May 27.

The opinions are expected to be used as references when the government puts together its Basic Policy on Economic and Fiscal Management and Reform possibly in June.

The council points out that the impact of US tariff measures on the Japanese economy and public finances remains uncertain.

It also notes that there are people struggling with their livelihoods due to the continued rise in prices and stagnant real wages.

To deal with additional potential external shocks including natural disasters, the council said securing fiscal capacity is an urgent task.

It urges the government to aim to bring the primary balance, a key indicator of fiscal soundness, back to a surplus as soon as possible during the current and next fiscal year through March 2027.