The administration announced Wednesday a strategy to cease crisis-mode spending and return to budgetary health.
In a draft of yearly economic and fiscal policy guidelines given before Prime Minister Fumio Kishida’s Council on Economic and Fiscal Policy, the administration promised to normalize expenditure.
It also examines local government expenditures and state pandemic subsidies.
Kishida told the gathering that the government “will promote economic and fiscal reform steadily” under the guidelines that will be announced in mid-June.
The administration kept its fiscal 2025 primary budget surplus aim but did not include it in the proposed guidelines.
The proposal pledged to limit crisis-mode expenditure.
The proposal also stated that child-related policies are “the most effective investment for a bright future” and that the government will work to increase the birthrate.
The document called for the country to lead global supply chains for vital products including next-generation semiconductors.
The government said Japan will lead worldwide debates on dangers and build generative AI tools for fast expanding artificial intelligence technology.
The administration expected 2% consumer inflation and wage growth from the Bank of Japan.
The document suggested the government will restructure the job market through reskilling.
After many issues with the My Number personal identification system, the administration committed to ensure safety and restore public trust. The proposal also proposes working with the private sector to boost My Number card use.