Basic Policy Published

The Basic Policy adopted by the Cabinet on September 17, Reiwa 8, reflects domestic and international conditions and the trends of the times, including the rollout by countries worldwide of industrial policies involving large-scale, long-term fiscal spending and intensifying competition among states for high-value-added industries and talent.

To improve growth potential while securing medium- to long-term fiscal sustainability, the government will promote crisis-management investment and growth investment and create a virtuous cycle through higher potential growth, increased employment and income, improved consumer sentiment, increased business profits, and organic growth in tax revenues.

The policy pillars are economic and fiscal management based on the concept of “responsible proactive fiscal policy,” protecting the lives and livelihoods of the people, strengthening diplomatic and defense capabilities, and improving policy communications.

A virtuous cycle driven by GDP expansion will steadily reduce the debt-to-GDP ratio, enabling Japan to achieve both robust economic growth and fiscal sustainability.

Reduce the burden on low- and middle-income people struggling with rising prices and tax and social insurance contributions, overcome population decline and the declining birthrate, and expand support for challenges at each life stage.

When a national crisis occurs, respond with protecting the lives and property of the people as the first priority and ensure public order and safety.

Communicate new legal systems and measures under consideration in an easy-to-understand manner so that the people can understand and make use of the Cabinet’s policies.

The government will take the initiative in advancing public-private cooperation and promote crisis-management investment and growth investment, centered on the 17 strategic fields of the Japan Growth Strategy. It will also advance industrial cluster plans based on the 3 types in the Regional Future Strategy and pursue robust economic growth throughout the Japanese archipelago.

While closely monitoring the situation in the Middle East and elsewhere, the government will address rising prices and, based on discussions by the National Council on Social Security, pursue integrated tax and social security reform, including a temporary reduction in the consumption tax rate on food and beverages and the introduction of employment-related burden-reduction support payments. Expanding external demand, alongside domestic demand, is also important for strengthening supply capacity. The government will identify the needs of partner-country markets through meetings with foreign counterparts, encourage the adoption of Japanese products, and share the details across the Cabinet.

The government will make its response to natural disasters such as earthquakes and torrential rain robust and work on reconstruction following major disasters, including the Great East Japan Earthquake and the Kumamoto Earthquake. It will give concrete form to measures against special fraud, the realization of an “orderly coexistence with foreign nationals,” and measures addressing population decline. It will respond resolutely to problematic conduct and work to realize this society. Led by the minister responsible for economic security, the government will continuously conduct supply chain surveys and build an economic structure resilient to exchange-rate fluctuations and economic coercion.

Led by the Digital Minister, the ministries and agencies in charge, local governments, relevant organizations, and businesses will cooperate to strengthen cybersecurity measures and training.

With the Japan-US Alliance as its cornerstone, the government will advance a “Free and Open Indo-Pacific” and strengthen and expand cooperation with like-minded countries and nations of the Global South. It will work for the early return of victims of abductions by North Korea and, with the National Intelligence Council serving as the command center, enhance external intelligence capabilities and prevent undue interference by foreign countries. It will also advance economic security policy using intelligence, strengthen the defense production base, and review the “Three Strategic Documents.”