Japan PM Takaichi eyeing new quota for growth investment

At a meeting of the Council on Economic and Fiscal Policy, Takaichi, who chairs the panel, stressed the government's policy of ensuring sufficient budget allocations by exempting the 17 sectors from the rule limiting financing for related project funds to three years in principle.

"We will make it possible for government agencies and ministries to make budget requests to ensure that necessary amounts of funds are secured," she said.

In the annual state budget compilation, ministries and agencies submit their fund requests to the Finance Ministry by the end of August under related guidelines.

Still, Takaichi said she aims to secure the necessary funds for the 17 areas by reviewing budget compilation procedures.

Meanwhile, private-sector members of the council asked the government to make sure that the planned new quota will cover not only the 17 areas but also measures to support startups and enhance small businesses' earning power, which are expected to attract private-sector investments.

They also emphasised the need to allocate budgets to projects in the 17 areas over several years, as growth investments tend to take time to produce results.

At the meeting, council members also discussed reforms of the social security system. Takaichi instructed relevant ministers to consider setting a target rate for reducing insurance premiums for the working generations and advance the implementation of reform measures in the current fiscal year that ends in March 2027.

[Copyright The Jiji Press, Ltd.]