Japan Finance Chief Vows Fiscal Reform for Strong Economy

Tokyo, Feb. 20 (Jiji Press)–Japanese Finance Minister Satsuki Katayama on Friday pledged to reform the country’s fiscal structure to realize a strong economy and ensure fiscal sustainability. The country will “shift to a fiscal structure that supports a strong economy” by focusing on policies leading to further growth while reviewing ineffective measures, Katayama said in a policy speech before both chambers of the Diet, the country’s parliament. She emphasized that the proposed proactive yet responsible fiscal policy under Prime Minister Sanae Takaichi’s administration is “by no means an indiscriminate pursuit of budget expansion.” The government submitted its draft budget for fiscal 2026, which starts in April, to the Diet the same day. General-account spending in the budget bill reaches 122,309.2 billion yen, hitting a record high for the second straight year. In the budget, the government included programs to promote crisis management and growth investments, a signature policy of the Takaichi administration, on top of measures for a full-scale response to an inflationary economy. With the country expected to achieve its first primary balance surplus in 28 years on an initial budget basis, the envisaged fiscal 2026 budget takes fiscal discipline into account, Katayama said. On Japan’s path to fiscal consolidation, Katayama said that the country plans to gain financial market trust by reducing its debt-to-gross domestic product ratio in a stable way. END [Copyright The Jiji Press, Ltd.]