Manama: Her Excellency Sanae Takaichi, the Prime Minister of the Japanese Cabinet, approved its first economic and fiscal policy guidelines, prioritising aggressive fiscal spending in strategic areas to boost the economy.
According to Bahrain News Agency, the policy was outlined in the annual "Basic Policy on Economic and Fiscal Management and Reform 2026" adopted by the government of Prime Minister Sanae Takaichi. It is the first economic roadmap approved by her administration since she took office in October 2025.
The policy blueprint states the government will treat the next fiscal year from April as "the first year of responsible and proactive" spending and target a combined 370 trillion yen ($2.3 trillion) in public and private sector investment by fiscal 2040. The longer-term guidance is aimed at boosting predictability for businesses. Under the new plan, the government will spur investment across 17 fields in economic security, crisis preparedness and strategic industries, mainly focused on semiconductors, according to Japan news agency (Koydo).
Takaichi told a joint meeting of government panels on economic and fiscal policy and on the growth strategy that her administration will work "to build a strong economy and ensure fiscal sustainability," while striving to gain the trust of market participants through more consistent and clear communication.
With debt more than twice the size of the economy, Japan's fiscal space is limited, and concerns about its fiscal health under Takaichi have rattled markets, sending Japanese government bond yields soaring.