Japan Sets Investment Strategy

Jul 21, 2026 | News On Japan

Prime Minister Sanae Takaichi's government approved its first annual basic economic and fiscal policy on Tuesday, pledging "responsible and proactive fiscal policy" and envisioning about 370 trillion yen in public- and private-sector investment in strategic industries through fiscal 2040.

"The Takaichi Cabinet will break away from excessive fiscal restraint and the chronic lack of investment in the future, and will thoroughly strengthen domestic investment," Takaichi said.

The policy, known as the Basic Policy on Economic and Fiscal Management and Reform, designates the current fiscal year as the starting point for responsible and proactive fiscal policy.

The government expects investment totaling about 370 trillion yen to flow into strategic sectors including artificial intelligence and semiconductors by fiscal 2040.

It also aims to achieve a strong economy with real growth exceeding 1% and nominal growth above 3% as soon as possible.

On fiscal management, the policy removes the term "fiscal consolidation," which had appeared in previous versions, and instead places stable reductions in the ratio of outstanding government debt to gross domestic product at the center of its approach.

Source: TBS

Typhoon No. 24 Expected to Approach Japan Later This Week

A tropical depression south of Japan is expected to develop into Typhoon No. 24 by September 1 and could approach the Japanese archipelago later in the week, raising the risk of renewed warning-level rainfall and widespread flooding in Hokuriku and heavy rain in the Kanto and Tokai regions.

Japan Cuts Speed Limit on Residential Roads to 30 km/h

Japan will lower the statutory speed limit on certain residential roads from 60 kilometers per hour to 30 km/h from September 1, with police in Hyogo Prefecture urging drivers to familiarize themselves with the new rules and drive more carefully in neighborhood areas.

New Ferry to Link Kyoto and Hokkaido in About 21 Hours

A new large ferry linking Maizuru in Kyoto Prefecture with Otaru in Hokkaido has been unveiled ahead of its first voyage on September 1, offering spacious passenger facilities and a journey time of about 21 hours.

Heatstroke Alert Issued Day After Record Rain Hits Fukui

Residents in Fukui Prefecture began clearing flood-damaged homes early on August 31 as temperatures climbed sharply following record rainfall, prompting authorities to issue a heatstroke alert while recovery work continued in severe heat.

Drones Deliver Supplies to Residents Cut Off by Landslide

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

MEDIA CHANNELS

MORE Politics NEWS

Three Opposition Parties Abandon Merger Plans

The leaders of the Centrist Reform Alliance, the Constitutional Democratic Party of Japan and Komeito have agreed to abandon plans to merge their three parties, leaving the Centrist Reform Alliance effectively split.

Can Domestic Drone Production Transform Japan's Defense?

Japan is moving to strengthen its defenses against mass drone attacks after Terra Drone became the sole company to advance through a Defense Ministry program for a Japanese-made interceptor drone, drawing on battlefield technology and production methods developed in Ukraine while pushing for domestic production of critical components.

Takaichi Bond Cap Tests Fiscal Credibility As BOJ Pressure Builds

Prime Minister Sanae Takaichi moved on August 28 to contain market concern over her government’s spending plans, saying Japan will aim to cap new government bond issuance at around 40 trillion yen in the fiscal 2027 budget while still pursuing food-tax relief, growth investment and measures to support households facing higher prices.

Japan Unveils New Energy Security Policy

Japan has drawn up a new policy package aimed at strengthening energy security in response to developments in the Middle East, including support for alternative oil pipelines that would bypass the Strait of Hormuz and greater use of nuclear power to reduce dependence on fossil fuels.

Fukuoka 'Don' Resigns as Questions Remain Over Money

Former Fukuoka Prefectural Assembly speaker Isao Kuranouchi, long regarded as the dominant power in the chamber, resigned as an assembly member on August 25, intensifying scrutiny of allegations involving financial transactions, costly overseas inspection trips and policies backed by public funds while raising broader questions about how he accumulated such influence.