Takaichi pushes ¥3 trillion budget; panel skips target
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- Prime Minister Takaichi announced a supplemental budget to be submitted to the Diet in June, before the legislative session closes in July.
- The supplemental budget is set at JPY 3 trillion, earmarked for bolstering government reserves, continuing fuel subsidies, and providing JPY 500 billion for summer utility subsidies.
- Opposition parties and Ishin no Kai urged the government to add economic stimulus, citing weakening consumer sentiment, while the administration warned that rising bond yields make extra spending risky.
- Prime Minister Takaichi met one‑on‑one with Bank of Japan Governor Kazuo Ueda on Friday, her first since February, indicating possible openness to another BOJ rate hike to curb inflation.
- The LDP study group, convened by Taro Aso, held its inaugural meeting on May 21 with 347 lawmakers (over 80 % of the party), including former PM Fumio Kishida, though attendance was described as “not high.”
- The LDP national security panel released a draft that omits a concrete defense‑spending target, instead pledging to “secure a budget for transforming defense capabilities within five years,” while emphasizing unmanned vehicles and industrial‑base development.
Why it matters: The ¥3 trillion budget will reinforce the government's fiscal cushion and keep fuel and utility subsidies in place, benefiting households, while opposition demands for stimulus signal political pressure that could force extra spending. The defense panel’s omission of a spending target avoids committing to higher outlays amid rising bond yields, preserving fiscal flexibility for the ruling party.
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