Japan OKs defense, child care policy blueprint, delays tax decision

Japan endorsed Friday a policy blueprint to boost defense and child care spending without relying on tax hikes at least for the short term, as Prime Minister Fumio Kishida treads carefully to avoid a political and public backlash.

This year’s annual basic policy on economic and fiscal management also prioritizes labor market reform and wage growth as part of the premier’s push for wealth redistribution.

The government will boost economic growth through investment despite the debt-ridden nation facing the challenge of restoring its fiscal health, the worst among advanced economies, according to...