The draft of Prime Minister Sanae Takaichi's policy speech, scheduled for the special Diet session, has been revealed, demonstrating her administration’s commitment to promoting economic growth through enhanced investments. She intends to announce a detailed roadmap for public-private investments in advanced technologies and sectors poised for growth, aiming to be shared by March. Takaichi's emphasis on 'responsible active fiscal policy' aims to reassure those concerned about potential fiscal deterioration while targeting areas that can enhance economic security through crisis management investments and growth-oriented investments.

As part of her strategic approach, Takaichi will address the need to break free from the long-standing mindset of excessive austerity and insufficient future investments. Her speech is set to champion the idea of increasing domestic investments, which she deems overwhelmingly inadequate. She will firmly advocate for decisive fiscal actions necessary for achieving economic growth, asserting that hesitation in fiscal expenditure should not be an option. This approach serves to align her government’s fiscal policies with economic realities, especially in light of the challenges posed by a rapidly changing global economic landscape.

With Takaichi's reappointment expected on the 18th during the convening of the Diet, and the administration's second cabinet set to launch shortly thereafter, her policy speech has the potential to shape the economic conversation in Japan. The focus on a multi-year budgetary framework for managing investments signals a proactive stance in economic policy that could have significant implications for Japan's recovery and growth trajectory in the face of global uncertainties.