The Japanese government is no longer in a position to excessively rely on debt to handle the nations’ finances, Japanese Finance Minister said on Tuesday.

To ensure sustainable development, we must strongly press for economic growth, fiscal restoration and social security reform,” said a Xinhua report quoting Yoshihiko Noda, Japanese Finance Minister.

By March 2012, gross debt of central and regional governments in Japan is estimated at 184 percent of country’s gross domestic product (GDP), the highest level among major developed economies, Noda said.

The minister also urged the Diet to quickly pass the draft budget for the next fiscal year.

It is essential to pass the fiscal 2011 budget within the current year (ending March) in order to immediately implement the policies directly linked to people's lives, Noda said in his speech at the Diet.

Noda also warned of impact of deflation and falling birthrates on the country’s economy and stressed the need for finding a solution to address those issues.

Besides, the economic and fiscal policy minister Kaoru Yosano on Monday signaled at increasing the consumption tax in order to improve the nation’s finances. Yosano also pointed out the need for tax reform and rise in sales tax.

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