Takaichi Vows Fiscal Stimulus for Economic Growth in Policy Speech

Tokyo, Oct. 24 (Jiji Press)–Japanese Prime Minister Sanae Takaichi on Friday vowed to achieve economic growth through strategic fiscal measures, in her first policy address at parliament since taking office earlier this week. “I will build a strong economy,” Takaichi, also head of the ruling Liberal Democratic Party, said in the address delivered to both chambers of parliament. “I will create a strong and prosperous Japanese archipelago.” Setting the idea of finances depending on the economy at the core of the government’s economic and fiscal policy, Takaichi proposed the establishment of a council to discuss strategies for further economic growth, and unveiled plans to provide support for strategic industry sectors, such as artificial intelligence, semiconductors and shipbuilding. Viewing measures to tackle soaring prices as her immediate priority, Takaichi vowed to enact a bill to scrap the provisional gasoline tax surcharge by the end of the ongoing parliamentary session, as well as implement subsidies for electricity and gas rates during the winter months. Meanwhile, she voiced readiness to raise the taxable income threshold in a bid to address suggestions that the current threshold has caused people to cut back on work hours. Also in the address, the prime minister pledged to boost moves to drastically strengthen Japan’s defense capabilities, including by bringing forward the achievement of the goal to increase the country’s defense spending to 2 pct of GDP to within this fiscal year from within fiscal 2027. Her policy speech underscored a shift from her predecessor, Shigeru Ishiba, laying out more conservative views on the country’s security policies and measures on foreign nationals in Japan. With the international order disrupted by Russia’s invasion of Ukraine and other events, Takaichi said that Japan will revise its three key national security documents by the end of next year, with the aim of bolstering defense capabilities. Expressing her view that the Japan-U.S. alliance is the cornerstone of Japan’s foreign and security policies, Takaichi also touched on the importance of dialogue between the leaders of Japan and South Korea. While recognizing China as “an important neighbor,” Takaichi said that there are economic and other security-related concerns linked to the country, which has been intensifying its coercive actions. She indicated that she will aim to promote a mutually beneficial strategic relationship between the two Asian nations through summit-level dialogue. On criminal acts by some foreign nationals in Japan, Takaichi said that she will “respond firmly,” while saying that she would “draw the line” on xenophobia. She also said that her government will review current rules on land acquisition by foreigners. Takaichi proposed 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. On the “second capital” initiative of Nippon Ishin no Kai (Japan Innovation Party), which is the LDP’s new coalition partner, Takaichi said that the government will boost discussions about the responsibilities and functions of primary and secondary capitals. Aiming to submit a bill to revise the Constitution while she is in office, Takaichi expressed hopes for a boost to related suprapartisan talks. END [Copyright The Jiji Press, Ltd.]