Prime Minister Sanae Takaichi's cabinet approved its first economic and fiscal policy guidelines on Tuesday, emphasizing aggressive fiscal spending. The plan treats the next fiscal year as the first year of responsible and proactive spending and targets 370 trillion yen in combined investment by fiscal 2040.
The cabinet approved its first economic and fiscal policy guidelines on Tuesday, prioritizing aggressive fiscal spending in strategic areas. The blueprint designates the next fiscal year starting in April as the first year of responsible and proactive spending and sets a target of 370 trillion yen in combined public and private investment by fiscal 2040.
The document omits the phrase fiscal consolidation that appeared in last year's guidelines under former Prime Minister Shigeru Ishiba. Instead it calls for stably reducing the debt-to-GDP ratio over multiple years.
To fund investment in 17 fields including semiconductors, a new budget allotment without upper limits will be created from fiscal 2027. A footnote stresses Bank of Japan autonomy in monetary policy.
Prime Minister Sanae Takaichi told a joint meeting that her administration will build a strong economy and ensure fiscal sustainability while communicating clearly to markets.