[Provisional translation]
Good evening, everyone. Today, the FY2026 budget was passed by the House of Councillors and has been enacted. I would like to express my sincere gratitude to all those involved for their dedicated efforts and cooperation.
While it is regrettable that the budget could not be passed within the fiscal year, we have, with the understanding that “everything is for the peace of mind of the people and the building of a strong economy,” sought the cooperation of all those involved and benefited from their dedicated efforts. As a result, by responding sincerely to deliberations in the Diet, we believe we have been able to minimize, to the greatest extent possible, the risk of disruption to people’s daily lives.
The FY2026 budget passed today is based on the concept of “responsible and proactive public finances.” While making strategic choices across the budget as a whole, it provides for bold increases in areas such as strategic investments that enhance resilience against potential crises and investments that promote growth, thereby contributing to the realization of a “strong economy.”
Under the Takaichi Cabinet, we are advancing “budget formulation reform.” From the perspective of ensuring the predictability of government spending and supporting the initiatives of private-sector entities and local governments, we are working to allocate all necessary funds within the initial budget to the greatest extent possible. The FY2026 budget represents the first step in this effort.
Specifically, we have appropriately reflected economic and price trends across the overall budget, including through revisions to medical and nursing care fees, as well as reviews and improvements of public procurement and public systems.
We are also advancing key policies that are being implemented in a planned manner over multiple fiscal years with secured financial resources, including support for children and child-rearing, GX (Green Transformation), AI and semiconductors, and the strengthening of defense capabilities.
Moreover, by making strategic choices across the budget as a whole and securing new financial resources, we have increased funding for a range of key policies, including measures to make high school education effectively free and fundamental reductions in the burden of school meal costs. As a result, the total amount of the general account budget has reached a record high of 122.3 trillion yen.
At the same time, by making strategic choices across the budget as a whole, we have kept in check new government bond issuance for the general account below 30 trillion yen for the second consecutive year and reduced the government’s reliance on bond financing.
We believe this budget achieves both a strong economy and fiscal sustainability. It is a budget aimed at ensuring that, in all 47 prefectures, people can live in safety wherever they reside, have access to necessary medical care and welfare services, receive high-quality education, and find places to work.
We will make effective use of this budget to make the Japanese archipelago stronger and more prosperous and, to that end, continue our efforts to realize a “strong economy.”
In addition, today I would like to provide an update on the Takaichi Cabinet’s measures to address rising prices, in particular the implementation status of the economic measures compiled in November last year and the FY2025 supplementary budget that underpins them.
For example, with regard to the provisional tax rates on gasoline, the tax on gasoline was abolished on December 31 and the tax on the delivery of diesel oil on April 1, and support for electricity and gas charges was provided from January to March, when electricity and gas usage is high.
With regard to our grants to local regions for prioritized assistance, projects have been launched within the fiscal year across all prefectures and in most municipalities, with initiatives tailored to local circumstances now underway.
With regard to our child-rearing support allowances to help counter price increases, providing 20,000 yen per child aged 18 and under, disbursements have begun within the fiscal year in most municipalities.
In addition, with regard to a support package for medical care, nursing care, and related services, which was implemented without waiting for the timing of regular revisions to reimbursements for medical and nursing care services and focuses in particular on medical institutions and long-term care facilities in the red, as well as measures to improve the treatment of childcare workers and others, support is beginning to reach service providers through local governments.
As a result, by the end of April, around 90% of the projects and measures included in the economic measures package are expected to be accessible to the public. We will continue the steady and swift implementation of the FY2025 supplementary budget and work to ensure the early execution of the FY2026 budget.
Furthermore, in response to the current situation in the Middle East and rising crude oil prices, we implemented emergency measures to mitigate sharp price increases in gasoline, diesel, heavy oil, and kerosene, using the remaining balance of the fund, in order to protect people’s daily lives and economic activity.
As a result, gasoline prices, which had been 190.8 yen before the implementation of these measures, declined to 170.2 yen as of March 30. Looking ahead, even if elevated crude oil prices persist, we have secured a fund of over 1 trillion yen by utilizing the FY2025 reserve fund, in order to ensure that support can be provided seamlessly and in a stable manner.
With the passage of the FY2026 budget today, the reserve fund included in the budget can now be utilized if necessary. The Government will continue to closely monitor the economic impact of the situation in the Middle East and will take all necessary measures without hesitation.
In addition, today I would like to inform the public about the status of efforts to secure a stable supply of critical materials in response to the situation in the Middle East, for which the Government has appointed a minister in charge.
First, on the 11th of last month, the Takaichi Cabinet decided ahead of other countries to release oil stockpiles equivalent to approximately 45 days of consumption and took a leading role in the largest-ever coordinated release of oil stocks by the International Energy Agency (IEA). The necessary amount of oil for Japan as a whole has been secured.
Regarding alternative procurement of crude oil, we have made every effort to secure supplies through routes that do not pass through the Strait of Hormuz. As a result, procurement from sources such as the Middle East and the United States is expected to account for more than 20% of last year’s volume in April, and we have secured a prospect of replacing more than half of imports by May. In particular, procurement from the United States is expected to increase to approximately four times the level of the previous year in May.
Japan has oil stockpiles equivalent to approximately eight months of consumption, and, as a result of progress in such alternative procurement, we have secured a prospect of ensuring a stable supply of oil beyond the end of the year while limiting the volume of stockpile releases. We will further strengthen our efforts through public-private cooperation, including enhanced engagement with oil-producing countries to increase procurement from alternative sources, and take all possible measures to ensure a stable supply of crude oil.
While sufficient supply has been secured for Japan as a whole, we have strengthened measures to address localized supply imbalances and distribution bottlenecks observed in some areas.
Specifically, with regard to the supply of fuel to critical facilities such as medical and transportation services, we have requested oil refiners to determine priorities and to conduct direct sales without going through wholesalers.
We have also received reports that some customers are no longer able to secure the necessary volumes from fuel retailers with which they have contracts. For such customers, we have requested major oil refiners to supply fuel based on the volumes of the same month in the previous year, regardless of whether the supplier is affiliated with a major refiner.
Here are examples of how we have resolved supply bottlenecks.
In addition, we are working to ensure the stable supply of critical goods beyond energy sources. These include naphtha-derived chemical products, medical-related supplies, food packaging containers, garbage bags, and semiconductor-related materials. For each category of goods, we have surveyed and assessed how long manufacturers can continue supplying their products. Based on this understanding, we are promptly implementing measures such as utilizing inventories held by demand-side companies and retailers, as well as expanding or maintaining production both domestically and overseas.
In particular, with regard to medical care, we established a task force at the end of last month headed by the Minister of Health, Labour and Welfare and the Minister of Economy, Trade and Industry, and have been advancing our response. Through close coordination between the two ministries, we are monitoring and addressing the entire supply chain—from upstream chemical manufacturers to downstream medical institutions—from a broad, comprehensive perspective as well as with close, on-the-ground attention and a forward-looking view. For example, we have already resolved distribution bottlenecks involving A-grade heavy oil required for sterilizing pediatric catheters essential for neonatal nutrition, as well as ethylene oxide gas used to sterilize other medical devices.
If you are experiencing difficulties in procuring petroleum-derived fuels or related products, please contact the Ministry of Economy, Trade and Industry or the Ministry of Health, Labour and Welfare at the contact point provided. Based on the information received, we will address each case carefully and promptly.
To reiterate, Japan has secured the necessary overall quantities of crude oil and petroleum products. With regard as well to critical goods—including medical supplies—that are processed from crude oil and supplied from Asian countries, there is no immediate risk of supply disruption. The government will continue to make every effort to ensure that there is no adverse impact on the lives and livelihoods of the public.
That concludes my remarks. Thank you very much.
(Reporter)
Thank you. I am Okuzumi from the current coordinating media outlet, TV Asahi. Although this may overlap somewhat with your opening remarks, I would first like to ask for your assessment of the passage of the first initial budget under your administration. You have expressed regret that the budget could not be passed within the fiscal year, despite your stated intention to do so. Some have pointed out that, given the January dissolution of the House of Representatives, it was effectively impossible to meet the schedule. How do you respond to those views?
Amid the continuing tensions in the Middle East, you explained earlier that there is now a clear outlook for securing oil supplies beyond the end of the year. If that is the case, until at least when do you believe it will not be necessary to request energy conservation from the public? In addition, some members of both the ruling and opposition parties have called for the compilation of a supplementary budget. While you stated earlier that the government would respond without hesitation if necessary, how do you assess the need for a supplementary budget at this point in time?
I would also like to ask about the possible summit meeting with Iran. Could you share your thoughts on the timing of such a meeting and on what messages you intend to convey or issues you plan to discuss? In addition, President Trump stated at a press conference that Japan did not help, expressing dissatisfaction. Could you share your reaction to President Trump’s remarks?
Finally, it has been noted that your direct interaction with the media has decreased compared with previous administrations. Some believe this may have implications for the public’s right to know. How do you view this matter? Thank you.
(Prime Minister Takaichi)
First, with regard to my assessment of the passage of the budget: the FY2026 budget that was passed today reflects our commitment, under the principle of “responsible and proactive public finances,” to realizing a strong economy. It increases allocations to priority areas such as strategic investments that enhance resilience against potential crises and investments that promote growth—fields where investment is essential.
While it is indeed regrettable that the budget was not passed within the fiscal year, we approached the deliberations with the conviction that everything we do must serve the peace of mind of the public and the building of a strong economy. With that in mind, we sought the cooperation of all parties and parliamentary groups, and we responded sincerely to deliberations in the Diet. As a result, I believe we were able to minimize, to the greatest extent possible, the risk of disruption to people’s daily lives.
I am aware that some have pointed to the January dissolution as a contributing factor. However, thanks to the substantial cooperation extended by members of both the House of Representatives and the House of Councillors—who shared the common determination to safeguard the public’s well-being and reduce adverse impact—I believe the budget was passed relatively swiftly. For that, I am sincerely grateful.
With regard to securing crude oil supplies, in addition to maintaining petroleum reserves equivalent to approximately eight months of consumption, we have made every effort to procure supplies through routes that do not pass through the Strait of Hormuz, as I mentioned earlier. Alternative sourcing from other partners such as in the Middle East and the United States has progressed, and we now expect that, by May, more than half of our procurement will come from such alternative sources. As a result, we now have a clear outlook for securing crude oil supplies beyond the end of the year. The necessary quantities of crude oil and petroleum products for Japan as a whole have been secured. With respect to critical goods—including medical supplies—that are processed from crude oil and supplied from Asian countries, there is no immediate risk of supply disruption.
As for whether we will request energy conservation or demand restraint from the public, it is important to note that, as a resource-poor country, Japan has traditionally called for energy-saving efforts during periods of peak demand in summer and winter. We will continue to closely monitor current supply-demand conditions and price developments for critical goods, and, while keeping in mind the possibility of a prolonged situation, we will respond flexibly without ruling out any options.
With regard to the supplementary budget that was mentioned, the government has already implemented a range of support measures—including emergency mitigation measures—to ensure that the lives and livelihoods of the public are not adversely affected. At this point, it is difficult to make any definitive assessment of the impact of the situation in the Middle East. Should the need arise, we can also utilize the reserve fund included in the FY2026 budget passed today. Therefore, as of now, the government does not consider it necessary to immediately compile a supplementary budget. In any case, we will closely monitor the impact of developments in the Middle East on the economy and take appropriate action as circumstances require. As for dialogue at the leaders’ level with Iran, preparations are currently underway. I will not be able to elaborate further, but we intend to make every possible effort.
With regard to President Trump’s remarks, I will not comment on each individual statement. What is important is that we continue to work closely with relevant countries and international organizations as part of the broader international community and make every necessary diplomatic effort. Through dialogue and consultation, we must restore a peaceful situation and prevent any prolonged negative impact on the economy. I believe these are of utmost importance. For my part, I am fully committed to personally stepping forward and undertaking every possible diplomatic effort to achieve these goals.
With regard to responding to questions from members of the press, I am not aware whether the frequency is greater or less than under previous administrations. However, I do believe that the ways in which we convey necessary information to the public have become increasingly diverse. The media, through their reporting, fulfill several important functions: monitoring politics and government, helping to shape public opinion through debate and discussion, and serving an educational role in passing on knowledge and culture. In a democracy, the media play a vital role in safeguarding the public’s right to know as sovereign citizens. That is how I view the role of the press.
At the same time, communication through social media has become increasingly important as a means by which the public gathers information. There are occasions when we feel it is essential to inform the public of the government’s initiatives in a timely manner. For example, on weekends or late at night, when it may not be appropriate to impose on members of the press, there are times when we wish to share information promptly. In addition, social media platforms allow us to receive the public’s views directly through reply functions. For these reasons, I believe that such tools have a certain degree of effectiveness.
Since assuming office as Prime Minister, I have made it a point—whenever possible—to communicate on a daily basis, primarily through X, sharing information that includes policy matters; of course at times it may be topics on a more general note. At the same time, the National Diet, as the highest organ of state power, provides an essential forum. There, I am able to listen to the voices of the people as conveyed by their elected representatives and to communicate my own views directly to the public. Moreover, there are many members of the Diet who offer valuable perspectives—some of which I believe should be incorporated into our policies.
In this day and age, as we consider how best to combine these diverse methods of communication, we will continue to explore and refine our approach through trial and error, while also benefiting from your guidance.
(Reporter)
My name is Yokoyama from the Asahi Shimbun. May I ask one question? There have been criticisms that the time allocated for deliberations in the Budget Committee was too short, and that the time for intensive deliberations attended by the Prime Minister was shorter than in previous years and therefore insufficient. In your responses during the Budget Committee, you stated that you fully recognize the importance of Diet deliberations. Could you once again briefly share your view on the importance of such deliberations?
(Prime Minister Takaichi)
The Diet is the highest organ of state power and the place where the representatives of the people, in whom sovereignty rests, convene. Therefore, under the rules, when we are called upon, the Cabinet must duly appear, provide explanations, and respond to questions. I believe that is our responsibility.
As for when I, or other Ministers of State, may be called to appear in the Diet, such matters are determined by the committee chairs and the directors from both the ruling and opposition parties. We will leave those arrangements to them, and if we are invited to attend, we will do so willingly.