Candidates for the Liberal Democratic Party presidency have put forward economic proposals that would directly impact Japanese households. As speculation grows about a potential general election, many are calling for a new economic package. LDP Secretary General Toshimitsu Motegi emphasized the importance of advancing policies without raising taxes. During a policy speech event, he pledged to halt the proposed government plan to raise ¥1 trillion from higher taxes for expanded defense spending and another ¥1 trillion through higher health insurance premiums to address the declining birth rate. Motegi believes that tax revenue from economic growth can serve as an alternative source of funds, although it remains uncertain if it will be sufficient.
Former Chief Cabinet Secretary Katsunobu Kato has focused on expanding social welfare measures, advocating for “no school lunch fees, no child medical expenses, and no childbirth expenses.” At the same policy speech event, four out of nine candidates called for economic measures to address high prices. Former economic security minister Takayuki Kobayashi pledged to develop an economic package by year-end, while former Environment Minister Shinjiro Koizumi mentioned plans to increase benefits for households receiving pensions and others.
The government anticipates a full recovery of Japan’s economy from the pandemic and expects both central and local governments’ finances to return to surplus by fiscal 2025. However, if the new Cabinet formulates a large-scale economic package and compiles a supplementary budget, achieving this financial target may become unlikely.
Digital minister Taro Kono was the only candidate who explicitly stated during his speech that fiscal discipline should be maintained. He emphasized the need to mobilize finances during times of crisis while also building up financial reserves during peaceful periods.
Not all candidates addressed economic policies at this event.
