Overview
- Prime Minister Sanae Takaichi told parliament the government will gauge the primary balance over several years rather than rely on an annual metric.
- She said the current goal will not be scrapped immediately and she will instruct the cabinet in January to craft a new multi-year target.
- The shift comes as her administration prepares a spending package to ease living costs and channel investment into growth areas and defence.
- Takaichi said a cut to the sales tax remains an option for future consideration.
- Analysts warn the move tests fiscal credibility with debt near twice GDP and could complicate Bank of Japan rate decisions, with the next policy meeting on Dec. 18–19 and some expecting no hike.