Katsuya Okada, former secretary-general of Noda's ruling Democratic Party of Japan, was named deputy PM in a cabinet reshuffling. (UPI Photo/Keizo Mori) |
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TOKYO, Jan. 13 (UPI) -- Japanese Prime Minister Yoshihiko Noda, seeking passage of a sales tax hike, Friday reshuffled his Cabinet, making Katsuya Okada the deputy prime minister.
Okada, former secretary-general of Noda's ruling Democratic Party of Japan and former foreign minister, was expected to spearhead the talks with the opposition lawmakers on the sales tax hike, Kyodo News reported. Okada, who has experience in negotiating with the opposition, would also become minister in charge of tax and social security reform.
Noda, who became prime minister in September, has proposed a two-stage increase in the sales tax rate from the current 5 percent to 8 percent in April 2014 and to 10 percent in October 2015 to reduce the rising deficit.
The prime minister, however, also has opponents of the tax hike within his own party.
Japan, struggling to restore fiscal health, is described as having the worst economy among major developed countries, with long-term public sector debt approaching 200 percent of its gross domestic product.
The reshuffle aims to ''strengthen the ability'' of the government to tackle the country's tax and social security reforms, Chief Cabinet Secretary Osamu Fujimura told reporters, describing the reforms as "a key that cannot be escaped," Kyodo reported.
Noda's party has a majority in the lower house but not in the upper house.
As part of the reshuffle, Noda replaced Defense Minister Yasuo Ichikawa and consumer affairs minister Kenji Yamaoka, Kyodo reported.
The new defense minister will be Naoki Tanaka, a member of the upper house. Senior Vice Transport Minister Jin Matsubara will succeed Yamaoka.
