A draft of the upcoming edition of the economic blueprint suggests that the government wants to achieve nominal economic growth of at least 2 percent beginning in fiscal 2006.
The draft, discussed Wednesday by a key economic panel, refers to fiscal 2005 and fiscal 2006 as the years in which the government and the Bank of Japan should make a concerted effort to pull the economy out of deflation.
The blueprint, titled "Basic Policies for Economic and Fiscal Policy Management and Structural Reform," is the fourth of its kind since Prime Minister Junichiro Koizumi took office in April 2001.
It will serve as the guideline for the government's economic policy after adoption by the Cabinet early next month.
The draft also outlines plans to promote research and development activities as well as deregulation measures in fuel cells and six other strategic industrial areas in line with economic policies to cope with the nation's rapidly aging society.
It calls for creation of a program to develop next-generation human resources.
It also says efforts to fix the nation's debt-ridden finances should continue in the compilation of fiscal 2005 budgets, and urges each ministry and government agency to set achievement targets for major budgeted projects and issue assessments of the results.
The Council on Economic and Fiscal Policy, the government's key economic panel, is likely to see its members differ on the contentious issue of social security reforms.
Sources close to the panel said some members want to set a specific medium-term goal of curbing social security expenses in the economic blueprint, a demand expected to face stiff opposition from Chikara Sakaguchi, minister of health, labor and welfare.