Japan's government has set out its policy goals for managing the economy. This year's blueprint focuses on boosting productivity by investing in human resources.

The cabinet's reform charter notes the environment is improving for income and employment. But it says the economy is saddled with sluggish potential growth and what it calls "declining vitality" of the middle class.

It says the government will be looking at ways to introduce free preschool education and end the need for waiting lists at day-care centers.

The government is also setting its sights on free education at universities and vocational schools.

On the fiscal front, the government is sticking to its target of achieving a primary balance surplus by fiscal 2020.