[Provisional translation]
On June 30, 2026, Prime Minister Takaichi held the tenth meeting of the Council on Economic and Fiscal Policy in 2026 at the Prime Minister's Office.
At the meeting, the participants discussed the Basic Policy on Economic and Fiscal Management and Reform.
The Prime Minister delivered the following remarks based on the day's discussions.
(Prime Minister Takaichi)
Thank you all very much for your hard work today. Today we discussed the draft of the Basic Policy on Economic and Fiscal Management and Reform.
We will comprehensively reinforce Japan's overall strength as a nation by leveraging the latent power of Japan and the Japanese people. This is the mission of the Takaichi Cabinet.
At the core of these efforts is the realization of a robust economy. We will make a radical transition to new economic and fiscal management that is not an extension of what we have pursued until now.
The Takaichi Cabinet will break away from the long-term trend of underinvestment. In order to navigate the era of intense global competition in industrial policy, under the concept of responsible and proactive public finances, we will boldly and purposefully press forward with strategic investments that enhance resilience against potential crises and investments that promote growth while simultaneously promoting startups and other initiatives to boost our growth potential over the medium to long term.
Moreover, in order to induce private-sector investment, and with a view to improving the predictability of government budgeting, we will, based on the Japan Growth Strategy and Regional Future Strategy, fundamentally overhaul the way the national budget is formulated, including by establishing a "Strong and Prosperous Japan" investment framework that is separate from ordinary expenditures.
Under our approach of responsible and proactive public finances, we will position the steady lowering of our debt-to-gross domestic product (GDP) ratio as the core of our fiscal management targets. In tandem with this, we will conduct a careful examination of the fiscal scale that will be possible as we work to lower that ratio and, when formulating the budget in the future, we will set out in concrete terms the total amount of sovereign debt to be issued over the year, while paying due attention to maintaining the confidence of the market.
We will ensure that our total government expenditures are appropriate for strengthening Japan's economic growth potential and for the size of the economy expanding in nominal terms, taking into account prices, wages, the nominal size of the economy, our revenue projections, policy effects, and consistency with fiscal targets.
We will position these new efforts for economic and fiscal management as the Mid- to Long-Term Economic and Fiscal Plan Based on Responsible and Proactive Public Finances, with this plan lasting through fiscal year 2040. In fiscal year 2040, we intend to realize domestic private-sector capital investment of 230 trillion yen and GDP approaching 1,100 trillion yen while steadily lowering the debt-to-GDP ratio. We will at the earliest possible time establish economic growth that surpasses 1 percent in real terms and 3 percent in nominal terms as the norm, and we will work to raise those growth figures further.
In working toward this economic and fiscal vision we have laid out, we will, under the framework of the Council on Economic and Fiscal Policy, examine our progress each fiscal year from both microeconomic and macroeconomic perspectives, while also doing our utmost to simultaneously achieve a robust economy and fiscal sustainability.
On the basis of the draft presented today, we will continue coordinating with the ruling parties, aiming for Cabinet approval of the Basic Policy in mid-July.
With Minister Kiuchi playing a central role, please conduct the final coordination toward Cabinet approval in cooperation with the ruling parties. Our aim is to ensure that the Basic Policy presents to the Japanese people in a clear and easily understood manner the direction of economic and fiscal management under the Takaichi Cabinet.
I will end my remarks here. Thank you all very much.