Japan Adopts Economic, Fiscal Policy Guidelines for Strong Growth

Tokyo, July 21 (Jiji Press)--The Japanese government on Tuesday adopted its annual economic and fiscal policy guidelines, vowing to achieve a strong economy through increased public and private investment in strategic areas.

The Basic Policy on Economic and Fiscal Management and Reform 2026 was the first such document to be compiled under the administration of Prime Minister Sanae Takaichi, who took office in October 2025.

The latest guidelines said that thoroughly enhancing the country's comprehensive national power is a key mission of the Takaichi administration. Pledging to review fiscal targets and budget formulation to enable expansionary fiscal policies, the government said that it would pursue a fundamental shift toward a new approach to economic and fiscal management.

"We will break the trend of excessive fiscal austerity and underinvestment for the future, and thoroughly boost domestic investment," Takaichi said at a joint meeting of the Council on Economic and Fiscal Policy and the Council for Japan's Growth Strategy at the prime minister's office in Tokyo.

The guidelines feature a medium- to long-term economic and fiscal management plan for fiscal 2027-2040, with the government aiming to increase Japan's nominal gross domestic product to nearly 1,100 trillion yen, as well as to achieve the early establishment of real GDP growth of over 1 pct and nominal GDP growth of over 3 pct.

[Copyright The Jiji Press, Ltd.]