[Provisional Translation]
（Prime Minster TAKAICHI）
Good evening, everyone. Today, the Reshuffled Second Takaichi Cabinet was inaugurated.
In the House of Representatives general election in February, the Liberal Democratic Party (LDP) and the Japan Innovation Party (JIP), as the ruling coalition, put forward their campaign pledges and received a strong mandate from the Japanese people, with the LDP winning 316 seats and the JIP 36 seats.
Taking the gravity of that responsibility deeply to heart each day, the Takaichi Cabinet has devoted itself to its official duties and has continued to make decisions, move forward, and take on challenges in order to fulfill the governing policy commitments it made to the people.
Once we make a decision, the Government and ruling parties come together as one, without breaking ranks, and devote ourselves fully to realizing our governing policy commitments.
That is how the Government and ruling parties operate under the coalition government of the LDP and the JIP.
The reshuffled Cabinet will uphold responsible and proactive public finances as its overarching policy, accelerate policies aimed at realizing a strong economy, and make the Japanese archipelago stronger and more prosperous.
In recent years, governments around the world have been pursuing industrial policies involving large-scale, long-term fiscal expenditures, and competition among nations for high-value-added industries and human resources has been intensifying.
Through our two strategies -- the Japan Growth Strategy and the Strategy for the Future of Regions -- we will stimulate domestic investment, raise Japan’s potential growth rate, increase employment and income, foster a more positive attitude toward spending, and realize an economic virtuous cycle under an expanding GDP, whereby business profits rise and tax revenues expand organically.
Without growth, fiscal sustainability cannot be maintained.
And without greater economic returns, the financial resources needed to realize social security for all generations will never appear.
Now is the time to accelerate the implementation of responsible and proactive public finances.
Let me now explain the basic policy underlying the personnel appointments I have just made.
First, after carefully reviewing questionnaires distributed widely among LDP Diet members, regardless of the number of times they have been elected, I considered each individual’s expertise, awareness of the issues, and motivation. I selected as Cabinet ministers those whom I believe can propose additional measures aimed at fulfilling our commitments and move them forward.
Second, I selected those who demonstrated their electoral strength by firmly securing their seats even in the extremely difficult House of Representatives election the year before last, and whom I believe can devote themselves to steadily considering and implementing policies rather than having to return to their constituencies virtually every week.
Third, I decided to retain ministers serving in positions where continuity is particularly important. These include portfolios in which building personal relationships with counterparts in foreign governments is essential, such as foreign affairs and trade, as well as portfolios where we need to accelerate work on the administration’s highest-priority issues, such as economic and fiscal policy and the Growth Strategy.
Put simply, I closely examined the policy proposals submitted through the questionnaires as well as each individual’s initiative and passion, and made these appointments with an emphasis on the ability to deliver results.
At the same time, I reviewed the allocation of portfolios so that the administration as a whole can demonstrate its capabilities to the fullest, taking into account the need to address new policy challenges responsibly as well as the expertise and experience of each minister.
Our relationship of trust with the JIP, which made the pivotal decision to form a new coalition with the LDP when our party was facing its most trying circumstances, remains unwavering.
During the previous Diet session, we achieved a number of the policies set out in our coalition agreement, further strengthening the relationship between our two parties both in name and in substance.
In this Cabinet reshuffle, I decided to appoint Mr. NAKATSUKA Hiroshi, who had been serving as Secretary-General of the Japan Innovation Party, to the Cabinet as Minister in charge of Regulatory Reform.
Reviewing regulations and systems that have become bottlenecks to growth and promoting private-sector investment and technological innovation is a major pillar of our Growth Strategy. With his strongly reform-minded approach, I expect Minister Nakatsuka to carry out bold regulatory reforms.
Mr. Nakatsuka’s appointment to the Cabinet symbolizes the LDP-JIP coalition government entering a new stage.
As the linchpin of my reshuffled Cabinet, Mr. KIHARA Minoru will remain in his post of Chief Cabinet Secretary.
This year marks the first year of Responsible and Proactive Public Finances.
Guided by the Japan Growth Strategy and the Strategy for the Future of Regions, the Government will take the lead in driving both strategic investments that enhance resilience against potential crises and investments that promote growth.
Ms. KATAYAMA Satsuki will remain as Minister of Finance.
Minister Katayama will play a central role in realizing Responsible and Proactive Public Finances, which aims to ensure medium- to long-term fiscal sustainability while enhancing Japan’s growth potential. She will also assume responsibility as Minister in charge of Consumption Tax and Working Individuals’ Burden Relief Support Benefit Legislation, shouldering the important task of steering this legislation through the next Diet session.
Mr. KIUCHI Minoru will remain as Minister in charge of Economic and Fiscal Policy.
He will bring concrete shape to both our economic and fiscal policy and the Japan Growth Strategy, areas in which policy continuity and close dialogue with the markets are particularly important.
Mr. FUJII Hisayuki will serve as Minister for Internal Affairs and Communications.
In addition to his newly established remit of Minister in charge of Promoting the Development of a Secondary Capital and Related Matters, Minister Fujii will also serve concurrently as Minister in charge of the Strategy for the Future of Regions.
Under the Strategy for the Future of Regions, more than 50 industrial cluster plans have already been formulated and announced, while several hundred more are currently under development.
Minister Fujii will support the tremendous enthusiasm and determination of local governments seeking to transform the landscape of their regions and, working closely with the local administration divisions of the Ministry of Internal Affairs and Communications and other relevant bodies, promote policies that respond to local needs on the ground.
Mr. FURUKAWA Toshiharu will serve as Minister for Digital Transformation.
As digital reform in government and the quasi-public sector cannot be discussed without reference to AI, Minister Furukawa will also be appointed Minister in charge of Promoting AI and Digital Reform and Minister in charge of the Artificial Intelligence Strategy.
In addition, he will be responsible for Science and Technology Policy, Space Policy, Ocean Policy, Cybersecurity, the Intellectual Property Strategy, and the newly established Content Strategy, thereby helping to open up new frontiers under the Japan Growth Strategy.
Mr. AKAZAWA Ryosei will retain his post as Minister of Economy, Trade and Industry.
Amid growing labor shortages, it is essential to accelerate the use of AI in sectors such as healthcare, nursing care, transport, and construction, while promoting AI adoption among small- and medium-sized enterprises and micro businesses. In light of this, Minister Akazawa will also concurrently serve as Minister in charge of the Social Implementation of AI Transformation (AX).
Mr. YANA Kazuo will serve as Minister of Agriculture, Forestry and Fisheries.
He will advance comprehensive support for agriculture, forestry, and fisheries -- industries that sustain lives -- expand exports of agricultural, forestry, and fishery products and food products, and promote the social implementation of food technologies such as plant factories and land-based aquaculture.
Mr. UENO Kenichiro will remain as Minister of Health, Labour and Welfare.
He will be tasked with charting a winning strategy for Japan’s pharmaceutical industry in strategic fields, including drug discovery and advanced medical care, while also advancing discussions on labor legislation, including working-hour regulations that place priority on maintaining physical and mental well-being and respecting employees’ choices.
Mr. IBAYASHI Tatsunori will serve as Minister of Land, Infrastructure, Transport and Tourism.
In addition to translating policies in strategic fields such as national resilience and shipbuilding into concrete action, he will address challenges such as aging infrastructure, which is essential both for protecting lives and for underpinning industrial competitiveness.
Mr. SEKI Yoshihiro will serve as Minister of Education, Culture, Sports, Science and Technology.
Human capital is the source of national strength and the foundation of a strong economy.
Minister Seki will strengthen efforts toward realizing a technology-driven nation by advancing university reform and reinforcing support for institutions such as National Colleges of Technology (KOSEN) and technical high schools, thereby nurturing talent capable of taking on the growth fields of the future.
On diplomacy, since taking office on October 21 last year, I have visited 10 countries, attended 12 international meetings, and held talks and other diplomatic occasions with counterparts from 47 countries and international organizations. Through summit-level diplomacy with the United States, the Republic of Korea, ASEAN, the G7, and others, I have built relationships of trust.
I will further advance the concept of a “Free and Open Indo-Pacific,” or FOIP, and, building on the relationships of trust I have established with my counterparts around the world, accelerate the implementation of concrete initiatives, including “POWERR Asia.”
Foreign Minister MOTEGI Toshimitsu will remain in his post. To strengthen Japan’s diplomatic capabilities, I have asked him to further deepen our relations with countries around the world, including our allies and like-minded partners.
Amid a changing security environment, marked by the emergence of new forms of warfare, including the large-scale use of unmanned systems, as well as the need to prepare for prolonged conflicts, we will take the initiative in pursuing a fundamental reinforcement of Japan’s defense capabilities in order to protect our nation to the very end.
Defense Minister KOIZUMI Shinjiro will remain in his post. I have entrusted him with the important responsibility of ensuring the successful completion, by the end of this year, of the review of what are known as the “Three Strategic Documents.”
Since the inauguration of the Takaichi Cabinet, we have taken steps to strengthen Japan’s intelligence capabilities, including through the enactment of legislation establishing the National Intelligence Council and the National Intelligence Bureau, as well as the establishment of the Japan Foreign Investment Committee. However, these efforts represent no more than the first step in reform. Further measures to advance our economic security policies, including the establishment of data sovereignty, are essential.
Minister of State for Economic Security ONODA Kimi will retain her post. Having reviewed her portfolio, I will have her focus on economic security policy, as well as on promoting a society of well-ordered and harmonious coexistence with foreign nationals, a post she will also continue to oversee.
Mr. HOSONO Goshi will serve as Minister for Reconstruction. In anticipation of the establishment of the Disaster Management Agency in November, Minister Hosono will also take charge of disaster management, with the expectation that he will draw on and share laterally the knowledge and expertise gained through reconstruction work in Fukushima and the Tohoku region. From “disaster preparedness and preventive measures” to “recovery and reconstruction,” he will devote himself to bolstering Japan’s overall disaster management capabilities.
In light of the increasing severity and frequency of natural disasters around the world, we will also newly appoint a Minister in charge of International Disaster Management Cooperation, who will oversee the international dissemination of Japan’s disaster management technologies, knowledge, and expertise.
Concerns have been raised by Fukushima Prefecture regarding the additional responsibilities assigned to the Minister. However, our fundamental principle remains unchanged: “There can be no reconstruction of Tohoku without the reconstruction of Fukushima; there can be no revitalization of Japan without the reconstruction of Tohoku.” With this principle firmly in mind, Minister Hosono will devote himself fully to the reconstruction of Fukushima and bring his experience and capabilities to bear even more effectively than before.
Mr. SASAGAWA Hiroyoshi will remain as Minister of the Environment. I will also appoint Minister Sasagawa to the newly established portfolio of Minister in charge of Measures to Address Bear Attacks. Working closely with the relevant ministries and agencies, he will vigorously advance measures to prevent the growing incidence of human injuries caused by bears.
Mr. HANASHI Yasuhiro will serve as Chairman of the National Public Safety Commission. He will focus on ensuring public safety and security in Japan, with a view to eradicating heinous crimes, including those committed by so-called “Tokuryu,” or anonymous and fluid crime groups, and protecting the “lives and livelihoods” of the people.
He will also concurrently serve as the Minister in charge of the important policy areas of territorial issues and measures concerning Okinawa and the Northern Territories.
Mr. YAMASHITA Takashi will serve as Minister of Justice. In addition to overseeing gender equality, Minister Yamashita will conduct a comprehensive verification of Japan’s legal system as a whole and promote reforms to ensure that our legal framework keeps pace with changes in society.
This new Cabinet is "the Cabinet of Decision, Challenge, and Action.”
We have continued to make decisions and take on challenges in order to create a Japan where vibrant economic activity reaches every corner of the Japanese archipelago, and where both the people living today and those who will live in the future can lead their lives with safety and peace of mind. We have now entered the stage of full-fledged execution of our policies.
There is no future for a country that refuses to take on challenges. Politics that merely seeks to preserve the status quo cannot inspire hope. I expect every member of this new Cabinet to continue to take on challenges with unwavering determination, to step forward -- one step, and then another -- to unlock the latent potential of Japan and the Japanese people, and to devote themselves fully to putting our policies into action.
Some members of this Cabinet have previously received disciplinary measures in connection with political funding issues. Nevertheless, they possess the policy capabilities necessary to fulfill their responsibilities. This does not mean that their past actions are being erased or treated as though they never occurred. However, they have subsequently provided full explanations, and, through two elections, have been entrusted by the voters with the responsibility of serving in national politics. I expect them to approach their weighty public responsibilities with renewed discipline and a deep sense of responsibility.
In order to make the Japanese archipelago stronger and more prosperous, I ask for the understanding and support of the people of Japan for this new Cabinet, committed to “decision, challenge, and action.”
(Reporter)
I am Kaide from The Mainichi. This time in the personnel decisions, Deputy President Aso and Secretary-General Suzuki have been retained in their respective positions, while three of the four candidates who competed against you in last year’s LDP presidential election have also remained in the Cabinet. Thus, there is a notable degree of continuity in the core of the administration. There has been speculation that this lineup was also designed with a view to securing your re-election in the LDP presidential election scheduled for next autumn.
To what extent did you have this consideration in mind when making these personnel decisions?
I would also like to ask whether you currently have any intention of running in the next LDP presidential election. In addition, could you give us the reason why former Minister for Internal Affairs and Communications Hayashi was not appointed to the Cabinet this time?
At the same time, lawmakers who were found to have failed to disclose political funds in the political fundraising party scandal involving factions of the LDP were appointed to the Cabinet for the first time since the scandal came to light. In the wake of the scandal, discussions have continued on political funding reform, including tighter regulations on political donations from corporations and organizations, but the reform process remains unfinished.
We see allegations involving the transfer of money in the Fukuoka Prefectural Assembly, and I believe there is still deep public distrust over politics and money. Do you believe that these appointments will be met with public understanding? I would also like to ask you the reasons behind their appointments.
(Prime Minister Takaichi)
Thank you. These personnel decisions have been made with the aims of fully implementing our policies to ensure that vibrant economic activity reaches every corner of Japan and building a country where both the Japanese people living today and future generations can live in safety and security. They have nothing whatsoever to do with next year’s LDP presidential election.
With regard to those whom I ran against in last year’s LDP presidential election and who have been retained in their positions this time, I made these personnel decisions after confirming that the positions in which they are continuing are the positions they themselves preferred most. All of them have contributed greatly in their respective positions, demonstrating their abilities to the fullest.
In particular, I have decided to retain ministers who are responsible for major policy shifts, including the shift toward responsible and proactive public finances, as well as ministers whose personal relationships with their counterparts overseas should be maintained.
As for those who are newly joining the Cabinet, I carefully reviewed the questionnaires distributed to LDP members of the Diet and assessed each candidate’s expertise, awareness of the challenges facing Japan, and motivation.
After considering their policy expertise, initiative, and passion, I selected them with a particular emphasis on their ability to execute policies. I have chosen as Cabinet ministers individuals who possess the policy expertise and capabilities necessary to serve as members of this Cabinet of Decision, Challenge, and Action.
You asked about particular ministers. While I will refrain from commenting on individual Cabinet appointments, I expressed my gratitude this morning to those colleagues with whom I have worked since the formation of the Cabinet last year to pursue major policy changes. Following the Cabinet meeting at which the resignations of the previous Cabinet were formally accepted, I also asked for their continued support as the Takaichi administration takes on further challenges.
With regard to the issue of omissions in political funds reports, investigations have been conducted by prosecutors, and each of the respective lawmakers has provided full and sincere explanations. They were also entrusted with seats in the legislature in the election held the year before last, which was the most difficult election for them, and have faced the judgment of the people on two occasions, including in this year’s election. The fact that they have gone through the election process does not mean that their past actions have thereby become erased or treated as though they never occurred.
Nevertheless, from the perspective of placing priority on the ability to execute policies, I believe that each of these ministers possesses the policy expertise and capabilities necessary to serve as a member of my Cabinet. I expect them to approach their weighty public responsibilities with a renewed sense of discipline and responsibility.
(Reporter)
I am Hashiguchi from TBS. I would like to ask about your plans for the administration going forward. The extraordinary Diet session is expected to be convened early next month. Related bills such as one for reducing the consumption tax rate on food and beverages, as well as a bill to reduce the number of seats in the House of Representatives, are expected to be among the key issues of debate. Given that the ruling parties do not hold a majority in the Senate, how do you intend to negotiate with the opposition parties in order to secure passage of these bills? And with regard to the bill to reduce the number of seats, do you intend to seek its enactment during the upcoming extraordinary Diet session?
I would also like to ask about foreign policy. We are now entering a busy period for diplomacy. Could you tell us about the current status of considerations regarding a meeting with Chinese President Xi Jinping on the sidelines of the APEC Economic Leaders’ Meeting in November? Also, as part of this series of diplomatic engagements, I understand that arrangements may also be made for a meeting with U.S. President Donald Trump. Would you consider urging President Trump to lift the sanctions imposed on Tomoko Akane, President of the International Criminal Court (ICC), or otherwise seeking his cooperation toward having those sanctions lifted?
(Prime Minister Takaichi)
With regard to the bill concerning the reduction in the consumption tax rate on food and beverages and the introduction of financial assistance to help reduce the burden on working individuals, we have been considering these measures based on our recognition that the most pressing issue at present is to reduce the burden on middle- and lower-income earners who have been struggling with rising prices and the burden of taxes and social insurance contributions. In the discussions at the National Council on Social Security, there was considerable common ground among the participating political parties on the need to look at the overall burden of taxes and social insurance contributions borne by middle- and lower-income earners and to provide relief at an early stage. In particular, while there were various views regarding finely targeted assistance based on income levels, I believe that the proposal was broadly accepted by the participating political parties.
Based on the outline approved by the Cabinet the other day on September 15, the Government intends to take the necessary legislative measures and other steps as swiftly as possible. We will continue to give full consideration to the views of the various political parties contained in the [National Council for Social Security's] Interim Report and will approach the preparation and deliberation of the bills carefully, with the aim of securing the support of as many political parties as possible.
With regard to the bill on reducing the number of seats that you mentioned, this is a bill introduced by Diet members. It was submitted by the LDP and the Japan Innovation Party during the previous special session of the Diet and has been carried over for continued deliberation. I understand that it will continue to be discussed in the Diet. As this is a bill introduced by Diet members, it is rather difficult for me to comment on it in my capacity as Prime Minister at a press conference. That said, the question of how the number of seats in the Diet should be determined is an issue that goes to the very foundation of democracy. It is therefore a matter that should first and foremost be debated in the Diet, and I intend to closely monitor the course of those discussions.
This being said, I would add that, with regard to reducing the number of seats in the House of Representatives, the LDP has signed a coalition government agreement with the Japan Innovation Party. In addition, reducing the number of seats was included as a policy pledge in our campaign platform for this year’s House of Representatives election. Accordingly, I believe we should make a sincere effort toward realizing that commitment.
With regard to the upcoming diplomatic schedule, including the status of considerations regarding talks to be held at APEC, I would like to refrain from making any assumptions at this point. Even so, as I have stated consistently since taking office as Prime Minister, China is an important neighboring country for Japan. Our policy of comprehensively promoting a "Mutually Beneficial Relationship Based on Common Strategic Interests" while building "constructive and stable Japan-China relations" remains consistent. Precisely because there are pending issues and challenges between Japan and China, we engage in dialogue and maintain communication at various levels and on various occasions, and we attach great importance to doing so.
Going forward, we intend to maintain communication with the Chinese side and continue responding calmly and appropriately from the perspective of Japan’s national interests.
A Japan-U.S. summit meeting has not yet been confirmed. With regard to the ICC, however, we continue to engage with the United States on this matter. While maintaining close communication with the countries concerned, we will continue to work to strengthen the rule of law in the international community. I will also continue to convey Japan’s position on this issue.
(Reporter)
Madame Prime Minister, thank you for taking my question. I am Shiraishi with TV Tokyo.
Currently, we see Japan's long-term interest rates remain elevated, and market attention is growing regarding the Government's fiscal management going forward. Through the appointments you made in this Cabinet reshuffle, what kind of message or policy direction would you as Prime Minister like to convey to the markets in response to these market developments?
Also, various debates over monetary policy have been drawing attention overseas as well, including, in the United States, the Federal Reserve's decision to raise interest rates and President Trump's remarks in response. I would like to hear your views on interest rate movements and current financial conditions in Japan and the U.S., giving due consideration to the independence of central banks.
(Prime Minister Takaichi)
Thank you for your question.
In order to ensure the confidence of the market through enhanced communication, we will provide to the Japanese public and to domestic and overseas market participants highly transparent, careful, and consistent explanations with regard to our economic and fiscal management based on the principle of responsible and proactive public finances, including the contents of our Basic Policy on Economic and Fiscal Management and Reform. When I made the recent Cabinet reshuffle, I gave clear instructions to the relevant ministers regarding that point.
Going forward, under the principle of responsible and proactive public finances, we will bring about both a strong economy and fiscal sustainability in a balanced manner, thereby fulfilling our responsibility to both the Japanese people living today and future generations.
Interest rates are determined in the market, in the context of a variety of factors. I will not make any specific comments on market movements, as that could result in unforeseen impacts on the markets. Specific monetary policy measures are entrusted to the Bank of Japan, and I believe that is exactly how it should be, so I will not make any comments from the standpoint of the Government.
I have been saying this for quite some time, but my expectation is that the Bank of Japan will continue to act in close cooperation with the Government and manage monetary policy appropriately, taking economic, price, and financial considerations into account, with a view to attaining the 2 percent price stability target in a sustained and stable manner.
(Reporter)
I am Sonoda with the Kumamoto Nichi-Nichi Shimbun. Thank you for this opportunity.
I would like to ask about recovery and reconstruction from the Kumamoto Earthquake. The Government compiled an assistance package at the end of August, with the Cabinet approving reserve fund expenditures of 147.8 billion yen. As we move forward and the disaster victims transition into other phases of recovery, I would like to hear the Government's policy on recovery and reconstruction, including further support.
Also, the assistance package includes examination of establishing a reconstruction fund, which has been strongly requested by the areas affected, and consideration of financial support from the national government. I would also like to ask if you intend to move beyond the consideration stage to implement these measures.
(Prime Minister Takaichi)
Thank you very much for your question.
I would like to start by offering my heartfelt sympathies.
On September 1, the Government established the Headquarters for Supporting Recovery and Reconstruction from the 2026 Kumamoto Earthquake, based on the thinking that, from a medium- to long-term perspective, it is necessary to build support systems for recovery and reconstruction from the quake.
This Headquarters intends to follow up on the progress of the support package for rebuilding the lives and livelihoods of the disaster victims that was approved by the Cabinet on August 27, and to provide support for drawing up the Kumamoto Prefecture Recovery and Reconstruction Plan. As we closely monitor the specific needs of the affected areas, we will push forward with steady recovery and reconstruction and reliably support both the day-to-day lives of people in the affected areas and local economies.
Previously, a considerable amount of time was needed to prepare fiscal measures for the Reconstruction Fund. However, in the case of the recent Kumamoto Earthquake, we have included it in the support package so that it can be considered swiftly.
The Reconstruction Fund provides funding for local governments in disaster-affected areas to undertake projects that fall into the gaps in national government systems, based on the circumstances of the affected areas. We are currently asking both Kumamoto Prefecture and municipalities within Kumamoto Prefecture about their specific views or needs.
We intend to provide all necessary support based on the views voiced by Kumamoto Prefecture and the municipalities within Kumamoto Prefecture, so that the recovery and reconstruction of disaster-affected local governments can proceed swiftly.
(Reporter)
I am Sagisaka with the Denki Shimbun. Thank you for taking my question.
Considering the lineup of your new Cabinet, I would like to know how you will promote Green Transformation, also known as GX policy. It was decided at a meeting of the GX Implementation Council in August that the POWERR GX Strategy would be compiled by the end of 2026. I would like to know what you specifically envision that Strategy will include, and also your intention and your aim in retaining Minister Akazawa, Minister of Economy, Trade and Industry, and Minister in charge of Green Transformation.
(Prime Minister Takaichi)
Thank you for your question.
Japan will further strengthen the GX initiatives it has pioneered ahead of the rest of the world by enhancing resilience in two respects: fundamentally improving the stability of fossil fuel procurement and further accelerating and strengthening GX. We will further strengthen our GX initiatives from the perspective of resilience and advance this vigorously as “POWERR GX.”
At the meeting of the GX Implementation Council held last month, in August, we decided to advance a wide range of measures simultaneously, including introducing a mechanism to provide incentives to businesses working to diversify their sources of crude oil and naphtha; strengthening the supply system for petroleum-related products, including naphtha and intermediate products; curbing energy prices by promoting the maximum use of nuclear power with safety as the overriding priority; accelerating the introduction and development of perovskite solar cells, next-generation geothermal power generation, and fossil fuel alternatives; and accelerating efforts made through the POWERR Asia initiative to enhance the resilience of energy supply and demand among like-minded countries.
"Natural resources and energy security, and Green Transformation (GX)" is one of the strategic fields in Japan's Growth Strategy. Through public-private cooperation, we will stimulate private sector domestic investment and provide consistent support until the creation of demand both domestically and overseas. By doing so, we will link these efforts to enhancing Japan's growth potential.
Under the Takaichi Cabinet, we will swiftly get to work on efforts that can move into execution, including submitting bills to the next Diet session. I have already given instructions to Minister Akazawa to compile the POWERR GX Strategy by the end of this year. I reappointed Minister Akazawa, who has been serving as Minister in charge of Green Transformation until now, in order to vigorously advance these efforts. We will also firmly link our Green Transformation efforts to our initiatives to bring about a strong economy.
Thank you very much.
(REPORTER)
My name is Ikeda from Kyodo News. Thank you for taking my question.
I would like to ask about the consumption tax reduction. Regarding the plan to reduce the consumption tax rate on food and beverages to 1 percent for a limited period of two years starting next year, while opinion polls conducted by media organizations show support for the measure, there are also concerns about its impact on public finances. With requests for the FY2027 General Account budget reaching a record high, there are also concerns in the financial markets about the Government’s fiscal management, as was mentioned earlier. How do you intend to address these concerns?
(PRIME MINISTER TAKAICHI)
First, with regard to securing the financial resources needed for the reduction in the consumption tax rate on food and beverages, we will secure those resources without relying on the issuance of deficit-financing bonds, in a manner that will ensure the confidence of the market. I do not believe there is any need for concern regarding that. We have a solid outlook for securing the necessary resources.
The Takaichi Cabinet will address a number of important challenges, including properly reflecting economic and price developments and establishing the “Strong and Prosperous Japan” Investment Framework, and there are various other fiscal needs as well. As for securing the financial resources for all of those needs, we will consider this matter while keeping in view the overall image of the budget formulation reform that we will undertake in the future.
Going forward, within the very broad framework of budget formulation reform, we will review both expenditures and revenues while carefully assessing trends in tax revenues and other factors. At the same time, we will carefully assess the fiscal scale that is feasible as we steadily reduce the government debt-to-GDP ratio. As we did last year, we will appropriately control the total amount of government bond issuance for the full year, combining the initial and supplementary budgets, while responding to various fiscal needs.
Through these efforts, under our approach of responsible and proactive public finances, we will achieve a strong economy and ensure fiscal sustainability in an integrated manner. We will secure market confidence by carefully explaining this policy to market participants and others.
That is all. Thank you.
(REPORTER)
My name is Suda from the Shinano Mainichi Shimbun. Thank you for taking my question.
I would like to ask about rice. This year’s newly harvested rice has begun appearing on supermarket shelves and elsewhere, and we are seeing the unusual situation in which new-crop rice is less expensive than last year’s rice. While consumers certainly welcome being able to purchase rice at more affordable prices, the provisional payments made to farmers when newly harvested rice is collected are significantly lower than last year in many areas, and many farmers are concerned that their business conditions may deteriorate going forward.
Madame Prime Minister, how do you view this situation? And what measures does the Government intend to take to enable farmers to continue producing rice, including the possibility of further repurchases of rice for government stockpiles?
(PRIME MINISTER TAKAICHI)
The fundamental principle is that rice prices are determined by the market. I believe it is important for prices to settle at a level that enables producers to sustain production while also being acceptable to consumers.
Regarding your question about repurchasing rice for government stockpiles, from the perspective of food security, I recognize the need to buy back stockpiled rice and restore the level of reserves going forward in preparation for possible supply shortages resulting from poor harvests in the future or sudden increases in demand.
To that end, the Ministry of Agriculture, Forestry and Fisheries will smoothly proceed with the recently decided buyback of 210,000 tons of rice. In addition, I understand that, while continuing to carefully assess supply and demand conditions and other factors, the Government will steadily proceed with the planned replenishment of stockpiles toward an appropriate level from the perspective of food security.
As for rice, we will work to diversify export destinations, including for processed food products, and actively expand into global markets, thereby increasing demand. At the same time, we are currently in the five-year period for undertaking intensive measures to transform agricultural structures. During this period for intensive measures, we will secure a separate and sufficient budgetary allocation and enhance and strengthen relevant measures, thereby also improving productivity.
(REPORTER)
My name is Tajima from the Yomiuri Shimbun. Thank you for taking my question.
I would like to ask about the approach you took in selecting the members of this Cabinet. You have long said that you would place importance on the questionnaire and make personnel decisions based on factors such as expertise. There was also a time when Cabinet appointments were made on the basis of recommendations from LDP factions.
Why did you choose this approach on this occasion, and specifically what aspects of the responses to the questionnaire did you evaluate? Also, did you take into consideration the balance among the former factions, as was traditionally the case?
(PRIME MINISTER TAKAICHI)
With the exception of members of the Senate and members of the Japan Innovation Party, who were not asked to complete the questionnaire, almost all of the ministers have been appointed to the positions they indicated they wished to hold in their questionnaire responses. The appointments placed particular emphasis on the individuals’ own aims, such as Chief Cabinet Secretary Kihara’s strong commitment to the abductions issue. I also confirmed the preferences of the two Senators who are remaining in their posts.
I personally spent a considerable amount of time carefully reviewing the questionnaires distributed widely among LDP Diet members, regardless of the number of times they had been elected. I considered each individual’s expertise and awareness of the issues and, in addition to their policy proposals, assessed their initiative and passion, while also placing importance on their ability to deliver results.
As I mentioned at the outset, I also selected people who are electorally strong politicians, such as those who reliably secured their seats even in the House of Representatives election two years ago, which was extremely difficult for the LDP. In other words, I selected people whom I believe can devote themselves to steadily considering and implementing policies rather than having to return to their constituencies virtually every week.
The individuals newly appointed to the Cabinet were selected in accordance with these principles. I therefore gave absolutely no consideration to maintaining a balance among the former factions.
That is all.