Prime Minister Takaichi emphasizes prioritizing economic growth in his policy speech: ``Starting the year of responsible and proactive fiscal policy''

On the afternoon of the 5th, Prime Minister Sanae Takaichi delivered a speech expressing his views at plenary sessions of both houses of the House of Representatives. Under the slogans of ``Keizaimin'' and ``Decision, Challenge, Action,'' he emphasized his policy of prioritizing economic growth. He explained the consumption tax reduction bill for food and beverages as ``creating leeway in household budgets,'' and expressed confidence that the government will gain ``market confidence'' regarding fiscal management.

Prime Minister Takaichi pursues economic growth and calls for "fiscal sustainability" - speech expressing his beliefs

The government has declared that it will realize a ``virtuous cycle of gross domestic product (GDP) expansion'' that will lead to increases in employment, income, and tax revenue through government-led growth investment. ``This is the beginning of a new year of responsible and active fiscal policy,'' which will balance growth and sustainable finances.

In light of concerns about fiscal deterioration, the government said it would ``comprehensively examine prices, tax revenue, interest rates, interest payment costs, etc., and appropriately control the amount of government bonds issued throughout the year.'' He also emphasized that if the economy or market shows unexpected movements, the government will ``flexibly take necessary measures.''

Regarding the consumption tax reduction bill, which will be the main focus of the extraordinary Diet session, he pointed out that the opposition parties were also advocating for a tax reduction, and called for support. He declined to provide a detailed explanation of the financial resources, saying only, ``We will secure them without relying on special public bonds (deficit bonds).There is nothing to worry about.'' Although the bill clearly states that the tax cut will be a two-year measure, it was not mentioned in the speech.

Regarding China, where relations have been deteriorating for a long time, he said, ``We will continue dialogue to protect our national interests and build a constructive and stable relationship.'' In light of China's expansion of coercive acts and military activities around Japan, he appealed, ``We will assert what needs to be asserted and strongly urge responsible action.''

Regarding foreign policy, he announced his intention to further promote a ``free and open Indo-Pacific,'' with the Japan-US alliance at the core. He supported the International Criminal Court (ICC), which US President Trump has called on countries to withdraw from, and demonstrated a stance to maintain and strengthen the rule of law in the international community. He stated that Japan will steadily strengthen its defense capabilities, keeping in mind the revision of three security-related documents at the end of the year.

Regarding the bill to reduce the number of members of the House of Representatives, which is strongly advocated by the coalition partner Japan Restoration Party, he said, ``I hope that there will be a thorough discussion to make this a reality in the current Diet session.'' Regarding constitutional amendments, he said, ``I strongly hope that the Constitution Review Committee will have a constructive and lively discussion that transcends party lines.''