Thick-boned Plan Leaves Fiscal Discipline Behind
Sanae Takaichi Cabinet officially authorized Basic Policy on Economic and Fiscal Management and Reform (Thick-boned Plan) 2026 on July 21 st . Following Takaichi’s firm conviction for building a strong economy, the plan focuses on active investment on businesses, leaving fiscal discipline behind. It is not clear, however, whether the markets will place fundamental trust in this economic policy of Takaichi government. The plan is annual guideline of the Cabinet for important economic policies and formulation of annual budget. Former prime minister, Jun-ichiro Koizumi, started publishing the plan in 2001, which was discussed in Council on Economic and Fiscal Policy. The plan has been directing economic policy of every administration, reflecting basic idea of the prime minister. Since she took office last October, Prime Minister Takaichi has been insisting on promoting investment for crisis management and growth. Takaichi recognizes that a longtime slowdown of J...