Government Statement

The House of Representatives has just been dissolved.

The Takaichi Cabinet came into being from the Diet resulting from the most recent House of Representatives and House of Councillors elections, which were held under the Liberal Democratic Party (LDP)-Komeito coalition government.

As a coalition government taking as its basis the coalition agreement between the LDP and the Japan Innovation Party (JIP), this Cabinet differs significantly in terms of both its administrative framework and the policy content it promotes.

Ever since this Cabinet was inaugurated, it has placed foremost priority on responding to rising prices, an issue confronting the Japanese people, and has formulated comprehensive economic measures to bring about a strong Japanese economy. It has also enacted a supplementary budget for fiscal year 2025 to provide the backing for those measures.

In order to ensure that the effects of our economic package reach the citizens at the earliest possible time, we are moving swiftly to carry out our assistance measures targeting households, including measures to reduce the prices of gasoline and diesel, assistance for electricity and gas bills, grants to local regions for prioritized assistance, and child-rearing support allowances to help counter price increases, which we are pursuing in tandem with assistance targeting business operators, including support to medical institutions, nursing care facilities, and other such facilities operating in the red, for managerial improvements and support for improvements in employees' treatment.

Having now successfully taken measures covering the near term, at this time, it is essential to shift into a higher gear in order to successfully execute major policy shifts designed to make the Japanese archipelago stronger and more prosperous. We must embark without delay on bold policies and reforms that could split public opinion, before it is too late.

The matter for us to tackle with the utmost priority is transitioning to responsible and proactive public finances within our economic and fiscal policy. It is necessary for us to ensure that people feel secure and at ease in their daily lives and livelihoods while also bringing about a strong economy in which we increase employment and incomes and encourage people to adopt a more positive attitude toward spending, as business profits improve and tax revenues rise naturally, even without raising tax rates. We will achieve this by leveraging strategic investments that enhance resilience against potential crises, growth investments, and other forms of strategic fiscal spending aimed at minimizing various risks and unlocking the full potential of cutting-edge technologies in such areas as food security, national resilience, and energy and resource security.

It is imperative that we fundamentally reform the way the national budget is created. We will conduct a review of the budget formulation method, in which it is assumed that a supplementary budget will be compiled each fiscal year, and instead allocate all necessary funds within the initial budget. Alongside this, we must set in place a system through which the government commits to providing fiscal outlays across multiple fiscal years, premised on results-based management being thoroughly implemented.

This constitutes a major shift in our policy for formulating the budget that will enhance the predictability of fiscal expenditures and, with regard to strategic investments that enhance resilience against potential crises and investments that promote growth, enable private-sector entities to undertake capital investments and engage in research and development with confidence.

This comprises a major reform requiring two years to carry out, beginning with the stage of formulating budget requests this summer and concluding when the budget for the following fiscal year, fiscal year 2027, is enacted.

Furthermore, it is incumbent upon us to fundamentally reinforce our security policies through revisions to the three security-related policy documents, including the National Security Strategy. In addition, we must fortify the government's intelligence capabilities. This will encompass, among other initiatives, the enhancement of policy coordinating functions through the establishment of a National Intelligence Bureau and other bodies as needed; the launch of a Committee on Foreign Investment in Japan, which will strengthen our framework for screening inbound foreign investment; and the enactment of laws related to intelligence and counterespionage.

These important policy shifts under our new administrative framework will be deliberated primarily by this year's Diet. For that reason, the Takaichi administration considers it imperative to put these policy shifts forward candidly for consideration by the people and seek a popular mandate immediately; consistent with this, the decision was taken to dissolve the House of Representatives at this juncture. After receiving a mandate in this general election, we intend to work to build a new nation, together with the Japanese people.

During the election campaign period as well, we will take the utmost care to execute all possible measures and make doubly sure there are no oversights in national governance by implementing our economic initiatives at the earliest possible time and executing crisis management initiatives, among other actions. Moreover, we will ensure that the holding of this general election does not negatively impact our administration of the nation, and prepare a provisional budget or take other steps, as the situation demands.

As the government, we strongly urge all concerned parties to ensure that the upcoming general election is run fairly and impartially from start to finish. We also sincerely hope that all members of the public thoroughly recognize the significance of this general election and exercise their right to vote with due care and consideration.