Comprehensive Economic Measures
to Build a “Strong Japanese Economy” —The Latent Power and Vigor of Japan and the Japanese People: Transforming Anxiety into Confidence—

01
Protecting households and workplaces from rising prices Ensuring security in people’s daily lives: Measures to address rising prices
Responding to the current surge in prices
  • Local governments are now implementing finely-tuned measures to address rising prices in a manner in line with local needs. To support these measures, we will expand our provision of the Priority Support Local Allocation Grant. While maintaining our existing initiatives supporting households and business operators, we will also advance additional measures to address the sharp rise in food prices, including initiatives such as rice vouchers and electronic coupons.
  • To reduce the burden imposed by energy costs and related expenses, we will provide assistance to reduce electricity and natural gas bills during the winter months having the most severe cold (for usage between January and March). With regard to gasoline, by December 11, 2025 we will increase subsidies to a level equivalent to the amount prices will drop in the future once the so-called provisional tax rate is abolished, and we will take steps to ensure that the provisional tax rate is abolished in a smooth manner.
  • To support child-rearing households, which have been significantly impacted by rising prices, we will provide to each child up to senior high school age a 20,000 yen child-rearing support allowance as a response to rising prices.
  • Taking into account rising prices, we will review the unit prices set out in contracts concluded between the national and local governments and the private sector, and will ensure thorough price pass-through in public-sector procurement.
  • To support low- and middle-income individuals impacted by rising prices, we will begin designing a system for refundable tax credits. At the same time, as part of the fiscal year 2026 tax reform, we will also examine raising the basic deduction in line with price levels and finalize a decision on this matter.
Harnessing regional growth potential and stabilizing everyday life
We will advance support for and the revitalization of key industries that sustain local living environments, including medical and nursing care, local transportation and logistics, retail and services, and tourism. We will support mid-sized enterprises and foster industrial clusters to create world-leading technologies and businesses originating in local regions. We will also work to realize a community-based, inclusive society by strengthening support systems for people facing economic hardship and enhance safety and security measures, including responses to bear-related damage. In addition, we will reinforce our responses to issues related to foreign nationals in Japan and pursue the revitalization of public education and measures to advance toward making education effectively free.
Creating an environment that enables wage increases, particularly for small- and medium-sized enterprises and micro-businesses
We will expand our provision of the Priority Support Local Allocation Grant and create an environment that enables wage increases at companies—including SMEs and small-scale businesses—that are unable to make use of the tax incentives that have been introduced to promote wage hikes. We will also ensure thorough price pass-through and fair business practices. We will intensify support for capital investment aimed at enhancing the earning power of mid-sized and small- and medium-sized enterprises and bolster our support to facilitate business succession and mergers and acquisitions while also strengthening hands-on, ongoing support structures.
02
Strengthening proactive and targeted efforts in strategic investments that enhance resilience against potential crises and in growth investments Strategic investments that enhance resilience against potential crises: Building a robust economy through growth-oriented investment
Strengthening economic security
We will harness bold strategic investments that enhance resilience against potential crises and investments that promote growth to ensure that people enjoy safety and peace of mind in their daily lives and to bring about a strong economy. We will advance public-private partnership investment in strategic sectors—such as AI, semiconductors, shipbuilding, quantum technologies, fusion, drug discovery, biotechnology, aviation, and space—and strengthen supply chains for critical materials. We will also enhance cybersecurity measures.
Establishing food security
From the perspective of ensuring food security, we will embark on five years of intensive measures to transform agricultural structures such as expanding farmland parcels while expanding our production of items for which our dependence on imports is high, securing production inputs, fostering human resources and supporting hilly and mountainous areas, realizing a more robust forestry sector, and enhancing the resilience of the fishery industry. We will also provide support toward achieving the target of 5 trillion yen in exports of agricultural, forestry, and fishery products and foodstuffs by 2030.
Strengthening energy and resource security
To build an economic and social structure resilient to rising energy costs, we will press forward with the restarting of nuclear reactors on the fundamental premise of ensuring their safety and will enhance our nuclear emergency preparedness. We will also promote the development of resources both in Japan and overseas, including research and development aimed at producing rare earths in the waters surrounding the island of Minamitorishima. In addition, we will strengthen financial support to stimulate investment in green transformation (GX) and work to create GX markets.
Promoting disaster prevention, mitigation, and national resilience
We will make every effort to advance recovery and reconstruction from natural disasters, including the Great East Japan Earthquake and the 2024 Noto Peninsula Earthquake. We will steadily promote initiatives intended to boost national resilience in line with relevant plans, while enhancing and reinforcing our disaster management system—including preparations for establishing the Disaster Management Agency during fiscal year 2026—and advancing fundamental improvements to living conditions in evacuation shelters. We will also examine measures to establish a backup system for the capital’s crisis management functions.
Expanding investment for the future
We will support cutting-edge science and technology to strengthen international competitiveness through industry-government-academia collaboration; further reinforce support for start-ups; and promote the content industry, culture and the arts, and sports. We will also build a robust health and medical security system by promoting digital transformation (DX) in the medical and nursing care fields and promoting proactive preventive medicine. Moreover, we will promote investment in people through measures such as reskilling support, further advance efforts to establish Japan as a leading asset management nation, and enhance the environment for expanding growth investment.
03
Building a “Strong Japan” that safeguards the safety and prosperity of its people Strengthening defense capability and diplomatic power
Diplomacy and responding to changes in the security environment
We will promote defense buildup and strengthen the foundation of the defense industry while reinforcing the operational base and improving the working environment of the Self-Defense Forces by improving the treatment of SDF personnel, including facility development. We will pursue multifaceted economic diplomacy and also work to respond to changes in the security environment.
Responding to U.S. tariffs
We will take the necessary fiscal measures to ensure the steady implementation of the Japan-U.S. Strategic Investment Initiative. We will also provide financing support for SMEs affected by the U.S. tariffs and implement measures such as giving priority in the selection of subsidy recipients and raising subsidy rates to encourage capital investment by SMEs and small-scale businesses impacted by these tariffs.
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