TOKYO: Japanese Prime Minister Sanae Takaichi on Friday pledged to break with “excessive fiscal austerity” and boost long-term investment through a multi-year budget framework, underlining her administration’s commitment to revitalising the economy.
At the same time, in a nod to growing market concerns about Japan’s worsening finances, she vowed to set specific indicators to measure progress in getting the nation’s fiscal house in order.
Takaichi’s remarks highlight a core financial risk — her flagship spending plan must rejuvenate the world’s fourth-largest economy without triggering debt jitters that could unleash another slide in the yen and government bonds.