Priority within the policy system Organizational and Operational Principles 1. Goal. The basic idea about the Goal

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1 Office in charge: Minister s Secretariat about the Fulfill its functions of policy planning and coordination. Operational Principles 1 Given changes in the domestic and international situation, the MOF will need to fulfill the duties expected of it and to engage in more effective and efficient management in order to respond appropriately to various issues. Given these circumstances, the MOF considers it necessary for the ministry as a whole to fully demonstrate its policy preparation and coordination functions by conducting organizational management in areas that include working toward reinforced collaboration with each ministry bureau and the local finance bureaus. This should be pursued with an eye to appropriate implementation of policies and execution of individual items based on policy making by politicians, including decisions in meetings of three top posts in government affairs; namely, the minister, vice minister, and parliamentary secretary. In FY2010, the MOF is engaged in internal communication as well as liaison and coordination with concerned organizations and presented information and options needed for policy formulation through the holding of liaison conferences with bureau heads, etc. Such activities took place during the government s formulation of the New Growth Strategy (approved by the Cabinet on June 18, 2010), Fiscal Management Strategy (approved by the Cabinet on June 22, 2010), The Three-Step Economic Measures for the Realization of the New Growth Strategy (approved by the Cabinet on September 10, 2010), Emergency Economic. Measures to Cope with the Strong Yen and Deflation (approved by the Cabinet on October 8, 2010), and basic policy for budget compilation for FY2010 (approved by the Cabinet on December 16, 2010). At the same time, the MOF is tackling a broad range of issues that included appropriate response to the current severe economic and financial circumstances, budget allocation to priority fields based on the principle of selection and concentration, fundamental tax system reform, appropriate management of the debt management policy, and promotion of international finance system stability and orderly international trade as a contribution to sustainable development of the global economy. When doing so, the MOF presents information and options necessary for policy formulation from comprehensive and fundamental perspectives, while also engaging in internal communication as well as liaison and coordination with the local finance bureaus, which are general local branch bureaus of the MOF, by holding various meetings on policy issues and meetings of local finance bureau heads under the appropriate management of the Minister s Secretariat. Conscious of the government s basic policy and policies presented in the Roles and Responsibilities of Politicians and Bureaucrats, the MOF is working to achieve an appropriate division of roles and cooperative relationship between politicians and bureaucrats, and, with focus on the Minister s Secretariat, striving to bring more closeness in the relationship among the three top posts in government affairs. At the same time, in its effort to strengthen collaboration with local finance bureaus, the MOF is holding timely and appropriate opinion exchanges in meetings of local finance bureau heads and other venues. It is also making attempts to bring further tightness in collaboration between the central and regional levels by, for example, requesting reports from local finance bureau heads on the impact that the strong yen is having on the economies under their jurisdictions, the progress of regional revitalization, and other matters at an October meeting in order to ascertain items to serve as preconditions in policy formulation. It is recognized that the MOF made sufficient efforts in terms of appropriately assisting policymaking by politicians and of implementing policies and appropriately taking charge of individual policies based on policymaking by politicians. Thus, achievements in this area were rated B. Progress toward accomplishment. It is necessary for the MOF as a whole to fully demonstrate its policy preparation and coordination functions by conducting organizational management in areas that include working toward reinforced collaboration with each ministry bureau and the Local Finance Bureau. The MOF is working to achieve further closeness in liaison among bureaus inside and outside the ministry so that it can demonstrate its policy preparation and coordination functions. The MOF is formulating various policies under its jurisdiction, without causing insufficiencies in inter-bureau coordination or major disruptions in the policy formulation process. As it responds to conditions in Japan s economic society and surrounding trends in a timely and precise manner, the MOF will continue to effectively and efficiently engage in management, with focus on the Minister s Secretariat, to ensure the appropriate demonstration of the ministry s policy preparation and coordination functions. Furthermore, the Minister s Secretariat will continue to present information and options required for policymaking from comprehensive and fundamental perspectives in order to appropriately assist in the formulation, coordination, and establishment of policies by politicians, including basic operation policies of economic and fiscal policies, and will explain such information and options as appropriate to the general public. At the same time, the MOF will present information and options required for formulation of policies under the ministry s jurisdiction as necessary in a timely and appropriate manner, and will clarify such information and options through suitable opportunities, such as public finance speeches and replies by the Minister of Finance.

2 Related etc. Basic Principles of the Hatoyama Government September 16, 2009 Roles and Responsibilities of Politicians and Bureaucrats September 16, 2009

3 Office in charge: Minister s Secretariat Secretarial Division Develop and maintain highly professional, capable and principled human resources. Operational Principles 2 about the In the interest of maintaining and improving the capability of MOF personnel to execute their duties, the MOF must implement training for the purpose of acquiring specialized knowledge and education. The MOF is accurately ascertaining changes in the environment surrounding jurisdiction administration in its training institutions the Policy Research Institute, Customs Training Institute, and National Tax College. It also establishes training frameworks in these institutions that correspond to specialties and conducts training in these specialties. The MOF is steadily implementing training by reviewing training content in response to changes in the environment surrounding jurisdiction administration (based on workplace training needs and requests from staff members in each training institution) and by newly establishing or realigning training courses. Thus, achievements in this area were rated B: Progress toward accomplishment. The MOF is establishing new training and reinforcing training content based on workplace training needs and staff requests, etc., in each training institution in order to respond precisely to changes in the environment surrounding the relevant administration field and to contribute to the development and maintenance of human resources having high capabilities and knowledge. Although the MOF is currently working to efficiently implement training using limited facilities and within limited time periods, it will need to study methods for more efficiently supplying effective training based on continued and steady implementation of training that corresponds to new demands. Training is being implemented effectively by establishing and realigning training courses in response to changes in the environment surrounding jurisdiction administration. Based on workplace training needs and staff requests, etc., the MOF will establish new training and reinforce training content as needed in order to further enhance its current training framework. It will also continue work to develop and maintain human resources having high capabilities and knowledge through steady implementation of training that corresponds to demand. Related etc.

4 Office in charge: Minister s Secretariat Overall Co-ordination Division Provide and disclose information to the people and the market and collect opinions. Operational Principles 3 about the The MOF must communicate in easy-to-understand forms its various policies to people affected by these policies by providing accurate information to the public. Moreover, the MOF must take thoroughgoing steps to disclose and show accountability for information, in accordance with the Information Disclosure Law, in order to realize highly transparent administration. It must also appropriately handle personal information in accordance with the Private Information Protection Law. The MOF is moving forward with a full-scale renewal of its website in order to improve its convenience for users. It is also working to secure opportunities for communicating information while utilizing various lecture meetings and financial affairs administration monitors to accurately ascertain public opinion. The MOF is striving to quickly handle requests for information disclosure based on law, and is working to appropriately handle audits of disclosed/undisclosed information and other affairs. As for personal information in the ministry s possession, the MOF is striving to appropriately handle said information by conducting inspections and audits. The MOF is also appropriately transferring historical materials to the National Archives of Japan in accordance with its transfer plan. Furthermore, in an initiative coinciding with the Public Records Act s coming into force in April 2011, MOF is revising its regulations for management of government documents by incorporating transfer criteria issued by the National Archives of Japan. Thus, achievements in this area were rated B: Progress toward accomplishment. The MOF must work to communicate accurate information and to gather opinions by using various means, including its website, lecture meetings, and explanatory meetings for news media. The MOF worked to ascertain themes in which information disclosure is desired at an explanatory meeting targeting foreign news organizations and is using the results as a reference for holding the next explanatory meeting. The MOF is moving forward with a full-scale renewal of its website in order to improve its convenience for users. The MOF will continue to study methods for more effective public relations that give greater consideration to receivers of information, and will work to implement these methods as they are identified. For example, the MOF will need to study improvement of its pamphlets and website from the standpoint of information users. The MOF will also work to more appropriately implement information disclosure and protection of personal information. Related etc.

5 Office in charge: Minister s Secretariat Overall Co-ordination Division Promote information and communications technology in the administration towards the realization of the electronic government. Operational Principles 4 about the The MOF will strive to improve convenience for the public and to bring simplicity, efficiency, sophistication, and transparency to operations by applying information technology in areas and conducting simultaneous review of its operations. The two main pillars of the effort to attain the Policy here are to improve the online services usage rate in government procedures and to steadily implement optimization plans for business processes and systems. To improve the usage rate of online services in government procedures, the MOF is steadily implementing various measures to raise the online usage rate for important procedures in the ministry (12 procedures related to customs and 15 procedures related to national tax) based on the Action Plan for Expanding On-Line Use. As for optimization plans for business processes and systems (hereinafter optimization plans ), the MOF is steadily implementing optimization plans under its charge and making timely and appropriate revisions to such plans when the need arises in order to reduce time required to handle business processes and system operation costs. Although the MOF has not achieved the target for the performance indicator network system questionnaire response rate for statistical surveys of business corporations, etc., the online use rate is rising for important MOF procedures and its optimization plans are making steady progress. Thus, achievements in this area were rated B. Progress toward accomplishment. The MOF must continue promoting e-government by improving online services in government procedures and reviewing business processes and systems from the viewpoint of utilizing IT in order to increase public convenience and bring simplicity, efficiency, trustworthiness, and transparency to management. In the area of budget requests and procurement pertaining to information systems, the MOF is working to develop appropriate information systems by ensuring greater efficiency in invested resources, including eliminating overlapping and securing consistency in request items, based on advice from Chief Information Officers (who are external experts) given from technical and specialized standpoints. It is expected that the MOF will actualize effects toward simplification, better efficiency, and improved user convenience in the handling of business processes by implementing specific measures to improve online usage rates for important procedures in the MOF based on the Action Plan for Expanding On-Line Use, as well as toward reduced business processing time and operational costs by the end of the optimization plans by steadily implementing the optimization plans under its charge. (Reflection of evaluation results on future activities) The MOF will continue to implement concrete policies to improve the online usage rate for important procedures in the MOF based on the Action Plan for Expanding On-Line Use. It will also take further steps to conduct appropriate progress management and evaluation based on the Optimization Guidelines for Business Processes and Systems when implementing the optimization plans under its change. As for establishment of information systems, the MOF will work to ensure fairness and transparency in procurement based on the Basic Policy for Government Procurement related to Information Systems. Moreover, in the area of information security, the MOF will steadily implement necessary measures along with the PDCA cycle based on IT technologies and environments. Related etc. Action Plan for Expanding On-Line Use September 12,2008

6 Office in charge: Minister s Secretariat Overall Co-ordination Division about the Ensure effective and efficient organizational management through steady policy evaluation, etc. Operational Principles 5 The MOF will steadily implement policy evaluations based on the Government Policy s Act and the MOF s Basic Plan for Policy. The MOF will work to promote measures regarding various regulations and system concepts to be based on recommendations concerning fundamental review of management for which study by the MOF Reform Project Team is proceeding under government guidelines concerning verification from a public perspective and without regard for sacred cows. Furthermore, with regard to reviews of independent institutions and government-affiliated public-service corporations, the MOF will actively conduct reviews of corporations that are under its jurisdiction based on comprehensive government guidelines. The MOF will appropriately apply the results of policy evaluations conducted by all government ministries in the budget formulation process, etc. The MOF is engaged in effective and efficient organizational management through steady efforts that include preparing implementation plans and evaluations, engaging in organizational and staff-size management, enforcing cost efficiency, and enhancing simplicity and efficiency. Although it is recognized that the MOF made certain progress in reviewing targets in its FY2011 implementation plans, setting well defined policy goals for priority advancement, increasing the number of performance indicators it sets, and effectively utilizing expenditure, there is room for improvement in the areas of implementing evaluations that are easy for the public to understand and further enforcing cost efficiency and effectiveness in a thorough manner. Thus, achievements toward the were rated B: Progress toward accomplishment. By taking active steps toward policy evaluation and then actively implementing evaluations, the MOF must 1) fulfill its accountability obligation to the public; 2) aim for administration that is efficient, of high quality, and results-oriented; and 3) aim to appropriately utilize the results of policy evaluations of each ministry and agency as the government s authority for financial affairs. Moreover, given the severe fiscal situation facing the country, the MOF must place emphasis on allocation of resources to policies with high priority and aim to implement high-quality services that focus on the people. The holding of policy evaluation supervisors meetings during policy evaluation work is leading to efficient work by, for example, allowing coordination among bureaus. The MOF is working to effectively execute cost reductions by thoroughly publicizing related information through cost supervisors meetings. The MOF must continue working to prepare implementation plans and evaluations that are easy for the public to understand. The MOF must also study measures for reflecting results on more effective and efficient operation by further enhancing the link between policy evaluation and budget. And the ministry must work for effective and efficient cost management through reviews of the single tendering process. Related etc. Policy Speech by Prime Minister Taro Aso to the 174th Session of the National Diet Policy Speech by Prime Minister Taro Aso to the 177th Session of the National Diet January 29, 2010 January 24, 2011

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