Japanese Prime Minister Fumio Kishida is set to propose a long list of policy targets for this year, according to a draft of the government’s fiscal policy proposal set to be unveiled amid speculation over a potential early election.
(Bloomberg) — Japanese Prime Minister Fumio Kishida is set to propose a long list of policy targets for this year, according to a draft of the government’s fiscal policy proposal set to be unveiled amid speculation over a potential early election.
The draft, which was obtained by Bloomberg Wednesday morning, doesn’t include any figures on the total cost of the suggested policies, or how they will be funded, leaving the question of how these goals will be achieved unanswered.
The government added a range of new policies in the draft in different areas where Japan is facing challenges, from childcare, supply chains to a greening of its economy. While the funding source remains unclear the plan may still help maintain Kishida’s recovering approval ratings, while speculation swirls that he may call an election sometime soon.
Continuing from last year, the government also stated its goal of seeking fiscal health, although it didn’t mention its goal of achieving primary balance by the year ending March 2026 for the second year in a row.
The most significant of the new additions this year is set to be an expansion of support for childcare in order to stop the country’s accelerating population decline. Still, Wednesday’s draft showed that the childcare policy details were still being debated, likely reflecting the level of contention surrounding the policies.
This year’s policy draft reiterated the Bank of Japan’s goal of achieving sustainable 2% inflation, while adding a clause on the need for wage gains, suggesting that the government remains in lockstep with the central bank’s policy guidance.
–With assistance from Emi Urabe.
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