Kihara Holds Meeting on Reviewing Tax Measures, Subsidies and Funds
Overview
On October 9, 2026, Chief Cabinet Secretary Kihara held the third meeting of relevant ministers and vice-ministers at the Prime Minister’s Office to discuss how self-review results had been reflected in budget requests and proposals, and what steps should follow. Kihara said that reflecting the results was only a first step and remained insufficient. For the fiscal 2027 budget, he outlined plans to scrutinize spending, thoroughly review special tax measures, subsidies and funds, and prioritize measures that induce private investment. The government aims to achieve a strong economy and fiscal sustainability together, thereby securing market confidence.
Key points
- The meeting was held on October 9, 2026.
- It was stated that reflecting self-review results in budget requests and proposals was only a first step and remained insufficient.
- The government outlined plans to advance budget formulation reforms for fiscal 2027 and achieve a strong economy and fiscal sustainability together.
Overview
On October 9, 2026, Chief Cabinet Secretary Kihara held the third meeting of relevant ministers and vice-ministers on the thorough review of special tax measures, subsidies and funds at the Prime Minister’s Office. The agenda covered how self-review results had been reflected in budget requests and proposals, and future steps.
Chief Cabinet Secretary Kihara said that ministries had conducted self-reviews following a request from Minister Katayama in April and reflected the results in budget requests and proposals, but he assessed the current situation as insufficient.
Impact
The government said it must build a strong economy and ensure fiscal sustainability together in order to secure market confidence.
Details
For the fiscal 2027 budget, the government plans to reflect responsible and proactive fiscal policy throughout the budget formulation process, continue efforts to reform spending, distinguish spending to expand from spending to review, and pursue disciplined resource allocation. It also plans to thoroughly review special tax measures, subsidies and funds, reassess policy priorities, and boldly prioritize truly effective measures that induce private investment.
Proactive efforts by each ministry and agency were deemed important. The government called on them, under Minister Katayama’s leadership, to deepen the reviews through the end of the year in line with the “Basic Approach and Review Focus Areas” presented today. It also expressed expectations for continued coordination with the ruling parties and for vice-ministers to exercise stronger leadership and accelerate the work.