{
  "id": 3908577,
  "title": "Japan’s Prime Minister Vows to Balance Economic Growth, Fiscal Discipline in Yomiuri Shimbun Interview",
  "url": "https://urgent.news/2026/08/28/japans-prime-minister-vows-to-balance-economic-growth-fiscal",
  "topic": "world",
  "section": "World",
  "published": "2026-08-28T06:21:04.000Z",
  "source": {
    "name": "The Japan News by The Yomiuri Shimbun",
    "slug": "the-japan-news-by-the-yomiuri-shimbun",
    "url": "https://japannews.yomiuri.co.jp/politics/politics-government/20260828-345920/"
  },
  "original_language": "en",
  "account": "In an interview with The Yomiuri Shimbun, Japan's Prime Minister Sanae Takaichi expressed her commitment to balancing economic growth and fiscal discipline. During the conversation, Takaichi, who also leads the Liberal Democratic Party, stated that \"fiscal sustainability cannot be maintained without growth.\" The Prime Minister outlined her policy of \"responsible and proactive public finances,\" which emphasizes achieving both growth and fiscal discipline. During the interview, Takaichi addressed the upcoming consumption tax cut on food items, which will decrease from 8% to 1% for two years. She expressed confidence that the government could secure sufficient funding, as the tax rate will be restored to its previous level in two years. Takaichi highlighted that \"responsible and proactive public finances\" does not mean choosing between growth and fiscal discipline, but rather finding a way to achieve both. Government ministries and agencies submitted preliminary budget requests for fiscal 2027 by Monday, with Takaichi indicating that the budget would allocate funds to policies that generate domestic investment. She also mentioned limiting the issuance of new government bonds to approximately ¥40 trillion. This approach, characterized by the absence of funding ceilings for crisis management and growth sectors, aims to ensure long-term predictability, stimulating private investment. The government plans to introduce legislation related to the consumption tax cut to the extraordinary session of the Diet this autumn. The planned temporary lowering of the tax rate on food items, starting in April 2027, aims to alleviate financial burdens on low- and middle-income earners and counter high prices. The tax rate is scheduled to be returned to 8% in April 2029, when a new cash benefit system for these earners will take effect. Takaichi noted that if the reduced rate were to remain indefinitely, it would impact public services like pensions and nursing care, expressing her determination to ensure its restoration in two years.",
  "summary": "Prime Minister Sanae Takaichi emphasized her intention to achieve both economic growth and fiscal discipline while encouraging domestic investment through her signature policy of “responsible and proactive public finances,” during an exclusive interview with The Yomiuri Shimbun on Thursday.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}