Policymakers have waged heated debate in recent months over how to reduce Japan's mounting fiscal debt as the yearend deadline for compiling the government's next fiscal year budget nears.
Prime Minister Yasuo Fukuda's government is seen leaning toward a consumption tax hike. His predecessors — Shinzo Abe and Junichiro Koizumi — had ruled out this option as they focused on other policy matters, and Koizumi in particular tried to rein in state spending.
Following are questions and answers regarding fiscal reform: