Stimulus
Finance Minister Purbaya Yudhi Sadewa is optimistic that the 2026 state budget deficit can be controlled due to January tax revenue growth of 30.8 percent. This achievement reached Rp116.2 trillion, or 4.9 percent of the budget target. The government's strategy emphasizes economic stimulus over tax rate increases.
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Prime Minister Sanae Takaichi unveiled Japan's largest round of extra spending since the easing of pandemic restrictions last week. She now faces the challenge of funding the ¥17.7 trillion package without adding to market nervousness. The cabinet is expected to approve the extra budget on Friday.