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Nov 27, 2025 19:14 (JST)
Tokyo, Nov. 27 (Jiji Press)–Japan’s upcoming basic policy for the fiscal 2026 regular budget will highlight spending to promote investment in artificial intelligence and other select areas in order to realize a powerful economy, a draft showed Thursday.
The draft was presented at a meeting of the government’s Council on Economic and Fiscal Policy, headed by Prime Minister Sanae Takaichi. It also underscored the importance of “responsible and proactive” public finances, reflecting Takaichi’s economic growth strategies.
The draft said that the government will balance economic revitalization and fiscal consolidation by lowering the ratio of government debt to gross domestic product, as the primary budget balance at the central and local governments is improving.
Takaichi has said that the government will consider aiming to achieve a primary surplus over years, changing its target currently tied to a single-year balance.
Nongovernmental council members expressed support for such a change Thursday. A primary surplus refers to a situation in which spending on policy measures is financed without new debt issuance.
[Copyright The Jiji Press, Ltd.]
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