Takaichi Vows to Scrap Govt Annual Primary Budget Surplus Goal

Tokyo, Nov. 7 (Jiji Press)–Japanese Prime Minister Sanae Takaichi said that her government plans to withdraw single-fiscal-year targets for turning the primary balance at the central and local governments into a surplus, at a House of Representatives Budget Committee meeting on Friday. The primary budget balance is an indicator of how much government spending on policies such as social security and public works is financed by tax and other revenues without relying on debt. During a question-and-answer session at the meeting, attended by Takaichi and all cabinet members, the prime minister said, “We are considering changing our policy of monitoring the achievement of the surplus target every fiscal year into confirming it every few years.” In response, Satoshi Honjo, policy chief of the main opposition Constitutional Democratic Party of Japan, said, “It sounds like the government has abandoned the target of fiscal consolidation.” Takaichi countered, “We will realize fiscal sustainability by lowering the government debt-to-gross domestic product ratio.” Honjo said that fiscal populism, in which government spending expands without a revenue source, is becoming more prevalent globally. Takaichi responded, “If (fiscal populism) means irresponsible populism to gain popularity by distributing money, then it is different from my administration’s policies.” Regarding a possible Taiwan contingency, Takaichi said that the situation could be classified as a “survival-threatening situation” for Japan, enabling the country to exercise the right to collective self-defense. “Various scenarios can be considered in which China tries to bring Taiwan under the control of its Beijing government,” Takaichi said. “If (China’s actions) involve the use of force, it is undoubtedly a case that could threaten Japan’s survival,” she added. For the first time since she took office in late October, Takaichi’s administration is participating in three days of question-and-answer sessions at the meeting starting Friday. END [Copyright The Jiji Press, Ltd.]