00:00Japanese Prime Minister Sanai Takaichi pledges to break with excessive fiscal austerity
00:06and boost long-term investment through a multi-year budget framework.
00:11This underlines her administration's commitment to revitalising the economy.
00:17Takaichi's remarks underscore a central financial risk
00:21as her flagship spending plan needs to revive the world's fourth largest economy
00:25without sparking debt jitters that could push the yen and government bonds into another slide.
00:31In the policy speech to Parliament, Takaichi repeated her resolve to pursue responsible,
00:37proactive fiscal policy aimed at increasing investment in areas like artificial intelligence,
00:42chips and shipbuilding to lift Japan's potential growth.
00:46She added that Japan should not hesitate to increase spending to support private investment.
00:51Known as an advocate of loose fiscal and monetary policy,
00:55Takaichi led her ruling party to a landslide victory in a general election on February 8
01:00with a pledge to boost spending and suspend by two years a consumption tax on food.
01:06Her calls for big spending and tax cuts sparked a sell-off in government bonds and the yen late last
01:12year
01:12as investors fretted over how Japan, laboring under the developed world's highest debt burden,
01:19would fund her big spending plans.
Comments