Tokyo, Oct. 5 (Jiji Press)–Japanese Prime Minister Sanae Takaichi called achieving economic growth her top priority in her policy address before parliament Monday, vowing efforts under her cabinet’s slogan of “decision, challenge and action.” In the speech given at the House of Representatives and the Senate, the two chambers of the Diet, Takaichi explained that the planned temporary reduction in the consumption tax on food products would provide households with more financial breathing room, while showing confidence in gaining market participants’ trust in fiscal management. She pledged that the government will realize a virtuous cycle under expanding gross domestic product by inducing increases in employment, income and tax revenues through government-led rises in investment in areas with growth potential. In the speech, delivered at the start of the 69-day extraordinary Diet session Monday, Takaichi declared the start of the first year of “responsible and proactive” public finances, a slogan of her administration aiming to achieve both economic growth and fiscal sustainability. Citing concern about fiscal deterioration, Takaichi said that the government will comprehensively examine prices, tax revenues, interest rates and debt-servicing costs, and properly control the issue amounts of government bonds. Necessary measures will be taken if unusual moves occur in markets, she added. The passage of legislation to lower the 8 pct consumption tax rate for food to 1 pct for two years is expected to be the main topic of the extraordinary Diet session. The prime minister called for support, noting that opposition parties had demanded a tax reduction. Takaichi avoided detailed explanations on financial resources for the tax reduction, only saying that the government will not rely on deficit-covering bonds. The legislation stipulates that the tax cut will last for two years, but she did not mention that in her speech. On the deteriorating relationship with China, Takaichi vowed to promote dialogue to protect national interests and build constructive and stable ties. With China’s coercive moves and expanding military activities around Japan in mind, the government will say what needs to be said and strongly call for responsible behavior, she added. Takaichi also said she will continue to put the Japan-U.S. alliance at the core of her country’s diplomatic policy and underlined her resolve to further promote the free and open Indo-Pacific initiative. Takaichi reiterated her support for the International Criminal Court, at a time when the United States is calling on member states to quit the ICC. She expressed her determination to maintain and strengthen international order by the rule of law. The government will steadily promote the strengthening of the country’s defense capabilities, she said ahead of a planned revision of the three key national security documents around year-end. Takaichi expressed hope for thorough debate during the just-opened Diet session on a plan to reduce the number of seats in the Lower House, a priority for the Japan Innovation Party, the Liberal Democratic Party’s coalition partner. She also said she expects solid discussions on constitutional revision involving many parties at the parliamentary commissions on the Constitution. END [Copyright The Jiji Press, Ltd.]
