An advisory panel to the finance minister is set to call for a cut in pension payouts to the wealthy in a bid to slash ballooning welfare expenses.
The move will come under the fiscal 2004 budget, according to the panels' draft report, obtained Wednesday.
The Fiscal System Council will also strongly oppose increasing the government's share of the basic public pension burden to half beginning fiscal 2004, unless a source of funds to cover necessary costs is named, the draft says. The council, which annually submits a report on budget compilation policy, will discuss the draft further Thursday. It is expected to submit a final report to Finance Minister Sadakazu Tanigaki on Nov. 26.
As part of efforts to limit spending in social security costs, the report recommended that pension payouts be cut not only for future recipients but also for those currently receiving benefits.