Japan: PM Takaichi flags looser fiscal goal in push to lift growth

AWANI

Japanese PM Sanae Takaichi says she will instruct officials in January to set a new fiscal target that allows for more flexible spending, as part of her push to revive growth.

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00:00Japan's Prime Minister Sanae Takahichi says her government will set a multi-year fiscal target,

00:06allowing more flexible spending and easing the country's commitment to fiscal consolidation.

00:12She also left the door open to a future cut in sales tax,

00:16signaling a focus on boosting the economy rather than tightening public finances.

00:21This shift marks a break from previous administrations,

00:25which used the annual fiscal target to show Japan's resolve and maintain market trust,

00:30even while deploying large spending packages.

00:33Under the existing fiscal blueprint, the government aimed for a primary budget surplus by 2025 to 2026.

00:40Takahichi plans to drop the annual balance as the consolidation goal, favoring a longer-term target instead.

00:46She has also called on the Bank of Japan to go slow on interest rate hikes to support growth.

00:52Since taking office last month, Takahichi has pledged spending to ease rising living costs,

00:57boost investment and strengthen defense.

01:00Japan is saddled with public debt twice the size of its economy,

01:04which is the worst among major economies.

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