Japan puts focus on growth to repair finances

Tokyo

JAPAN's government shifted focus on Tuesday to boosting economic growth and tax revenues to repair public finances, increasing concerns the government will shy away from painful and unpopular spending cuts.

The change in policy came after a meeting of the government's top advisory panel, where private-sector members said the government should aim to keep gross domestic product (GDP) growth above 2 per cent in real terms and 3 per cent in nominal terms.

The plan could come under attack due to worries that the economic assumptions are too optimistic and that it does not spell out how it will erase the budget deficit and meet an imp…