PM of Japan pledges higher defense spending
(MENAFN) Japan’s newly elected prime minister, Sanae Takaichi, announced on Friday that her administration will pursue an “aggressive” fiscal policy to stimulate economic growth and increase defense spending, while describing China as an “important neighbor.”
Speaking to parliament for the first time, Takaichi outlined her vision amid global economic uncertainty and ongoing inflation pressures. "I will turn (people's) anxieties about the present and future into hope and build a strong economy," she said.
To tackle inflation, she revealed plans to eliminate the provisional gasoline tax introduced in 1974 and raise the nontaxable income threshold from 1.03 million yen ($6,700) to 1.6 million yen this year. Her speech comes shortly after her election, making her Japan’s first female prime minister.
Takaichi also pledged to increase defense spending to 2% of GDP by March, two years ahead of schedule. Japan, the world’s fourth-largest economy, had planned around $70 billion in defense spending this fiscal year, equating to 1.8% of GDP. "We need to proactively promote the fundamental strengthening of our nation's defense capabilities," she said, citing shifts in the security environment since the previous administration finalized key policy documents in late 2022, including the National Security Strategy, National Defense Strategy, and Defense Buildup Program.
Takaichi emphasized that the alliance with the United States remains the “cornerstone” of Japan’s security and diplomatic policies and stated that her government will expand multilateral dialogues with South Korea, the Philippines, Australia, and India while promoting a “free and open Indo-Pacific.”
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