Press Conference by Prime Minister Ishiba regarding Comprehensive Economic Measures and Other Matters

The Cabinet took the decision to approve a package of Comprehensive Economic Measures to Foster Citizens' Safety and Security and Sustained Economic Growth. In order for the people to feel that they have become prosperous in their daily lives, it will be necessary for their wages and income to grow, both at present and in the years to come. The main purpose of this package of measures is aiming to break free from an economy focused on cost-cutting, transitioning to an economy oriented towards creating high added value.

In order for the people to feel that they have become prosperous in their daily lives, it will be necessary for their household budgets to be put at ease. Towards that end, naturally, we need to bring about wage increases that outpace price hikes. In order to raise the minimum wage and to make business owners, notably owners of small- and medium-sized enterprises (SMEs), certain to make a profit and able to raise wages now, we will create and set into motion a mechanism that strengthens managerial foundations and supports growth while also thoroughly supporting businesses in concrete terms in passing price increases through to clients. We will provide support for investments that save on labor requirements or improve efficiency as well as investments for digitalization.

It is important that people not only in our urban areas but also in our local areas feel hope and happiness in a tangible way.

By implementing at an accelerated pace a doubling of new grants for regional revitalization, we plan to support people in local areas as they think and act by and for themselves. We will also need means for not only current income but also future income to increase. By fiscal 2030, we will provide over 10 trillion yen of support from the public purse for the areas of artificial intelligence and semiconductors. We also intend to draw out public-private investments of more than 50 trillion yen over the next decade. We will build up necessary measures as time goes on. The total project scale for this is roughly 39 trillion yen, of which general account additions from the supplementary budget total 13.9 trillion. Both of these figures surpass the scale of the fiscal 2023 figures.

To compile this package, the LDP and Komeito worked in cooperation and engaged in careful consultations in order to adopt excellent policies across party and factional lines. The result was that we reached agreement with the Democratic Party For the People (DPP), and I believe this package will be vital in delivering measures to the people at the earliest possible time. The package also includes measures for the recovery and reconstruction of Noto.

From now, we will formulate the supplementary budget expeditiously and we will work to enact the budget early after completing deliberations in the Diet. In the lead-up to fiscal 2025, we will continue to advance our policies as we adopt excellent measures across party and factional lines. I look forward to your cooperation as we move forward. I will end my opening statement here.

(On whether these economic measures, after consultations with the DPP, incorporate a revision of the disincentives for second earners regarding their annual income, known as the “barrier of 1.03 million yen,” that raises the current threshold of 1.03 million yen in earnings to a higher threshold, as called for by the DPP; on the posture the LDP will take as a minority ruling party when the supplementary budget backing this package of economic measures is deliberated during the upcoming extraordinary Diet session)

As I just stated, this package of economic measures is not a product of the ruling parties alone, but rather something that was agreed upon through consultations with the DPP. My understanding is that, as part of that tri-party agreement among the LDP, Komeito, and the DPP, an agreement was reached to enact at an early time within 2024 the supplementary budget for fiscal 2024 backing this policy package, so that these new comprehensive economic measures just decided upon after this process of consultations can transition into implementation quickly.

In order to deliver the fruits of this package of comprehensive economic measures into the hands of the public at the earliest possible time, we aim to formulate the supplementary budget quickly and then, through cooperation with other political parties, enact it at the Diet at an early time. During deliberations on the budget, I intend to respond to interpellations in a highly thoroughgoing way, with the aim of enacting the budget early by gaining widespread understanding in the Diet.

(On the Government of Japan's reaction, expectation, and policy going forward regarding the Government of China's announcement today that it will resume visa exemptions for short-term stays in China for Japanese nationals)

I am aware of what was announced by China's Ministry of Foreign Affairs. I consider exchanges between the people of our two countries to be the most important part of the foundation of Japan-China bilateral relations into the future.

Until now, Japan has repeatedly requested that China undertake the early resumption of the visa exemption. We have been engaged in communication with China at various levels. I have high hopes that through the visa exemption measures that were announced, exchanges between our two countries will flourish further.