Takaichi Holds 15th Fiscal Policy Council Meeting of 2026
Overview
At the October 29, 2026 Council on Economic and Fiscal Policy meeting, participants discussed a fundamental review of the FY2027 budget process and policy-making in anticipation of economic and social transformation driven by AI. The Prime Minister instructed relevant ministers to develop budget guidelines that address both revenue and expenditure, improve the accuracy of tax revenue estimates, revise the Basic Plan for Artificial Intelligence to present a concrete vision of AI transformation, and establish a framework for examining the labor force and the economy and society over the medium to long term.
Key points
- For the FY2027 budget process, work will proceed on guidelines that present the overall fiscal picture from both the revenue and expenditure sides.
- The government will present a concrete vision of AI transformation and revise the Basic Plan for Artificial Intelligence.
- The Comprehensive Population Strategy will include measures to address labor needs, including through the use of AI and robots.
Overview
On October 29, 2026, Prime Minister Takaichi held the 15th Council on Economic and Fiscal Policy meeting of 2026 at the Prime Minister's Office. The two agenda items were developing a concrete plan for a fundamental review of the budget process and policy-making in anticipation of economic and social transformation driven by AI.
Impact
The Prime Minister called for improving the accuracy and transparency of tax revenue estimates and reflecting the results in the FY2027 budget process.
Details
Private-sector members proposed presenting the overall fiscal picture in the FY2027 budget process; explaining new government bond issuance as the result of efforts on both the revenue and expenditure sides; providing expense breakdowns; reviewing funds; and expanding the use of commitments to incur national treasury liabilities. The Prime Minister instructed Minister Kiuchi to develop the FY2027 Basic Policy on Budget Formulation, taking revenue and expenditure into account comprehensively. She also called for coordinating it with the Japan Growth Strategy Implementation Plan, specifying measures such as multi-year fiscal support, clarifying the approach to supplementary budgets, and improving tax revenue estimates in coordination with the Ministry of Finance.
Private-sector members proposed improving productivity; assessing effects on employment and workforce development; strengthening cybersecurity; and setting out a medium- to long-term vision for the economy and society. The Prime Minister instructed Minister Furukawa to present, by year-end, a concrete vision of government, industry, and daily life after AX (AI transformation); revise the Basic Plan for Artificial Intelligence; and provide timely information to the public in light of attacks on Japanese companies. She asked Minister Kiuchi to include measures to address labor needs in the Comprehensive Population Strategy, establish a framework to examine the economy and society over the medium to long term, including the effects of AI, and reflect the findings in next year's Basic Policy on Economic and Fiscal Management and Reform.