All national dailies reported on the Kishida administration’s announcement on Tuesday of its draft economic and fiscal policy guidelines and strategy to realize a “new form of capitalism.” Boosting investment in startups is one of the four key pillars of intensive investment in the overall strategy. The other focal areas of investment are human resources, science, technology and innovation, and green and digital technology. The draft strategy also includes measures to promote individuals’ shifting their money to investments from savings to double household asset income. The GOJ is planning to approve the draft strategy at a cabinet meeting on June 7. On the government’s goal of restoring its fiscal health in fiscal 2025, the strategy said it will “continue to work toward the goal” but fell short of stating a specific target year. The papers wrote that Prime Minister Kishida’s wealth distribution strategy has been put on the back burner in the action plan because it places more emphasis on investment and growth.
The draft economic and fiscal policy guidelines also note that Japan will drastically strengthen its defense capabilities in view of the increasingly severe security environment. However, instead of citing a specific target of increase for Japan’s defense budget, the guidelines refer to the NATO target of 2% of GDP.