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Japan Launches Talks for 2026 Economic‑Fiscal Blueprint

Private advisers endorsed verifying the primary balance over multiple years to align fiscal rules with pro‑growth spending.

Overview

  • The Council on Economic and Fiscal Policy met at the Prime Minister’s Office on December 25 to start drafting the next Basic Policy, aiming for completion in summer 2026.
  • Prime Minister Sanae Takaichi asked Minister Jonai to lead cross‑ministerial coordination for the compilation of the blueprint.
  • Private members including former BOJ deputy Masazumi Wakatabe backed a multi‑year check of the primary balance and urged faster preparation of a refundable tax credit for lower‑ and middle‑income households, with reporting indicating the government plans a national council including opposition parties in the new year.
  • The meeting approved updates to the evidence‑based policymaking action plan to strengthen effectiveness checks in social security, education, and science and technology.
  • The government directed ministers to speed local implementation and monitor uptake of measures such as child‑support payments and medical and long‑term care support packages.