Katayama Named Next Chair of World Bank–IMF Committee
Overview
Finance Minister Katayama said she had been nominated as the next chair of the World Bank–IMF Development Committee. Formal appointment is scheduled at the committee meeting on October 15, and the two-year term will run from the end of that meeting through October 2028. On reviewing tax incentives, subsidies, and funds and compiling a supplementary budget, she explained the policy of reviewing spending and revenue while responding to fiscal needs. The government has spent approximately 3 trillion yen each year in supplementary budgets for fiscal years 2023–2025 to address rising prices, but she said the amount to be reviewed cannot be given at this time because it will be considered during the budget preparation process. She also said she could not confirm attendance at the Annual Meetings until receiving approval from the Board of Directors of the House Steering Committee, and that, if able to attend, she would like to discuss the global economy and frontier AI.
Key points
- Finance Minister Katayama was nominated as the next chair of the World Bank–IMF Development Committee.
- She explained that the scale of funding from the review would be considered during the budget preparation process.
- She said she could not confirm attendance at the Annual Meetings while awaiting approval from the Board of Directors of the House Steering Committee.
Overview
The Development Committee is a forum where ministers from major World Bank and IMF member countries discuss development issues and make recommendations to the two institutions.
Minister Katayama explained that this would be the first time a Japanese finance minister chairs the committee since it was established in 1974.
Details
Formal appointment is scheduled at the committee meeting to be held in Bangkok, Thailand, on October 15. The term begins after the committee meeting concludes, and she is expected to have four opportunities to chair proceedings in total, in April and October from next April onward. Minister Katayama said she intends to draw on her experience and expertise in Japan's development, broad economic, and international financial policies and lead discussions with the cooperation of other countries.
The government faces fiscal needs including a cut in the consumption tax rate on food and beverages, the “Strong and Prosperous Japan” investment framework, and the incorporation of price trends. She explained that the government will assess tax revenue trends, review spending and revenue, scrutinize the feasible fiscal scale while steadily reducing the debt-to-GDP ratio, and appropriately manage annual government bond issuance. Under Japan's version of DOGE, the review of tax incentives and subsidies will be made thorough and expanded to include funds, and supplementary budgets will be limited to measures of genuine urgency. Taking into account grants to address rising prices and interim measures, specific review targets and scale will be considered during the budget preparation process.
She said that, if able to attend, she intends to exchange views with counterparts in light of the fluid and challenging global economic situation and discuss various issues, including responses to frontier AI.