The head of the the nation's most powerful business organization on Wednesday gave high marks to the government's budget-reduction plan, saying it is imperative to have business support the scheme.

Shoichiro Toyoda, who heads the Japan Federation of Business Organizations (Keidanren), praised the government for its attempt at fiscal reconsolidation, noting the next step is to fully implement the spending cuts. "This does not end the process, it is only a beginning, but it was very good that the prime minister showed the resolve to tackle the (fiscal deficit) issue," said Toyoda, who also heads the Fiscal System Council, an advisory body to the finance minister.

The head of the Japan Federation of Employers Associations (Nikkeiren) also hailed the reform program and pledged support. Nikkeiren Chairman Jiro Nemoto told a press conference the program covers areas that he had never expected the government to enter. As a member of the business and economic world, Nikkeiren will "actively provide support," he said.