Japan PM Takaichi signals watering down of fiscal consolidation target


Japan's Prime Minister Sanae Takaichi speaks during the 28th ASEAN-Japan Summit, as part of the 47th ASEAN Summit and Related Summits in Kuala Lumpur, Malaysia October 26, 2025. REUTERS/Chalinee Thirasupa/Pool

TOKYO (Reuters) -Japanese Prime Minister Sanae Takaichi late last week said her government will ditch the current annual fiscal target in favour of one that measures spending through several years, essentially watering down the country's commitment to fiscal consolidation.

The remark from Takaichi, known as an advocate of big spending, signals a major shift from past administrations that used the annual target as a key tool to show Japan's resolve to get its fiscal house in order in the long run.

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