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IMF concerned about Japan budgetary health

The International Monetary Fund has expressed strong concern about Japan's financial health, saying the recent natural disaster and ongoing nuclear crisis are weighing down the economy.

In a report released on Tuesday, the IMF criticized Japan for postponing budgetary reform before the March earthquake and tsunami.

The report notes that immediate disaster relief and reconstruction will demand significant additional government spending.

The IMF report says Japan should establish a firm plan to improve its finances over the medium term, once the government has assessed overall spending required for reconstruction. It recommends a rise in the consumption tax and social security reform.

Wednesday, April 13, 2011 12:21 +0900 (JST)