Takaichi to Stress Responsible, Active Fiscal Spending in Diet Speech

Tokyo, Oct. 22 (Jiji Press)–Japanese Prime Minister Sanae Takaichi will highlight responsible and active fiscal spending to boost people’s incomes in her upcoming policy address to the Diet, it was learned Wednesday. According to a speech draft, Takaichi will pledge to strategically conduct fiscal spending under the principle of responsible and active fiscal policy. She will stress that her cabinet will implement fiscal measures based on the idea that the economy is the foundation of government finances. The new prime minister will also emphasize active investment in cutting-edge industries, such as artificial intelligence and semiconductors, and the establishment of a council to discuss a strategy for further economic growth. She will note that her government will maintain market confidence by lowering the ratio of government debt to gross domestic product. The ruling and opposition parties are planning to schedule Takaichi’s policy speech for Friday. Also in the speech, Takaichi will propose creating a suprapartisan council including experts to discuss an integrated reform of the country’s tax and social security systems, including the design of a refundable tax credit program. As for her willingness expressed at a press conference Tuesday to revise the country’s three key national security documents, the prime minister will indicate that her government will aim to revise them by the end of next year. Meanwhile, she will vow to take measures during this fiscal year to achieve the target of increasing the country’s defense and other related spending to 2 pct of GDP. Regarding foreign citizens in Japan, Takaichi will recognize that Japanese people are worried about criminal acts by some foreigners. She will indicate her willingness to consider rules on land acquisition by foreigners, while avoiding xenophobia. On the “second capital” vision of Nippon Ishin no Kai (Japan Innovation Party), the new coalition partner of the ruling Liberal Democratic Party, Takaichi will stress that her government will accelerate discussions on the responsibilities and functions of possible primary and secondary capitals. As the LDP-led ruling bloc lacks a majority in both chambers of the Diet, Takaichi will call on opposition parties to come together to draw up economic measures and a supplementary budget for fiscal 2025 that will protect people’s daily lives amid inflation. To ease the impact of U.S. tariff measures, the prime minister will promise to take all possible measures, including financing aid for small businesses. On diplomacy, she will position China as an important neighbor while pointing to national security and economic security concerns. She will vow to comprehensively promote a mutually beneficial strategic relationship between the two countries through summit-level dialogue. END [Copyright The Jiji Press, Ltd.]