Announcement of Review of Discretionary Labor System and Establishment of National Intelligence Agency by Prime Minister Takai
Prime Minister Sanae Takai delivered her inaugural policy address highlighting the review of the discretionary labor system and the establishment of a national intelligence agency, while focusing on boosting domestic investment through responsible fiscal policies.
On the afternoon of the 20th, Prime Minister Sanae Takai addressed both chambers of the Diet in her first policy speech, in which she reiterated the importance of 'responsible proactive fiscal policy' to promote domestic investment. In the speech, she announced plans to review the discretionary labor system and expressed hope for early realization of constitutional amendments concerning proposals in the National Assembly. Highlighting the critical lack of domestic investment, the Prime Minister emphasized the need for crisis management and growth investments in areas contributing to economic security, aiming to shift away from long-standing excessive austerity and investment shortages.
In her address, Takai stressed the need for strong economic and diplomatic policies, stating that fiscal measures necessary for achieving economic growth should not be delayed. She called for a fundamental overhaul of government budgeting practices and advocated for bold improvement measures through multi-year budgets and long-term investment funds. Additionally, she discussed the zero consumption tax on food for two years, proposing to deliberate with both ruling and opposition parties to create a national conference focused on the budget structure and to aim for early submission of tax reform-related bills before summer.
Addressing concerns about worsening fiscal conditions, Takai assured that the focus would be on reducing the ratio of government debt to GDP to maintain market confidence. She explained plans to manage crisis management and growth investments separately within the budget over multiple years. The Prime Minister's speech signifies her commitment to reforming Japan's economic approach while balancing budgetary concerns and encouraging investment in future growth sectors.