Prime Minister Takaichi Holds 16th FY2026 Council Meeting
Overview
On November 11, 2026, Prime Minister Takaichi held the 16th meeting of the Council on Economic and Fiscal Policy at the Prime Minister's Office. The agenda covered macroeconomic management and the foundations of a growth-oriented, sustainable society. The Prime Minister outlined plans to pursue a growth economy in which real incomes and productivity rise sustainably, advance planned fiscal management, and coordinate with the Bank of Japan. She also instructed relevant ministers on support for rising prices, improving conditions for wage increases, price pass-through, measures related to the FY2027 budget, and a review of public works evaluation.
Key points
- The meeting was held on November 11, 2026.
- The meeting was the 16th FY2026 Council on Economic and Fiscal Policy.
- The Prime Minister said she aims for a growth economy in which real incomes and productivity rise sustainably and people can feel their lives becoming more prosperous.
- Instructions covered reflecting measures in the FY2027 budget, reviewing public works evaluation, and institutional responses for universities.
Overview
On November 11, 2026, Prime Minister Takaichi held a meeting at the Prime Minister's Office. The agenda items were “Macroeconomic Management (Focused Deliberation on Monetary Policy, Prices, and Related Matters)” and “The Foundations of a Growth-Oriented, Sustainable Society (1) and Other Matters.” Her remarks followed these two agenda items, addressing discussions on economic and fiscal management and strengthening social foundations, as well as instructions to ministers.
Private-sector members said they saw a virtuous cycle of wages and prices and an improving fiscal situation, indicating changes toward a growth economy. At the same time, they pointed to the need to achieve both a strong economy and fiscal sustainability.
Impact
The Prime Minister said planned fiscal management would encourage public and private investment and strengthen growth potential. She also said the aim is to achieve a growth economy in which real incomes and productivity rise sustainably and people can feel their lives becoming more prosperous.
Details
The government will pursue predictable, planned fiscal management centered on the initial budget, and coordinate with the Bank of Japan under the current joint statement to achieve price stability and sustainable economic growth. Minister Kiuchi was asked to provide uninterrupted support for rising prices, improve conditions for wage increases, monitor financial and capital market developments, and secure a stable macroeconomic environment. Minister Fujii was instructed to implement measures for passing on prices in local governments' public procurement, including stronger incentives through local fiscal measures.
Under the second agenda item, proposals addressed strengthening education and research capabilities and the foundations of infrastructure and public services for a strong regional economy, including matters to be reflected in the FY2027 budget. Minister Kiuchi was asked to compile the basic policy for budget formulation. Minister Seki was asked to develop concrete measures, including effective incentives to help universities shift faculties toward growth fields and adjust their scale appropriately, as well as institutional responses to encourage early decisions on consolidation and reorganization.
Minister Ibayashi was instructed to promptly reach a conclusion on reviewing public works evaluation, including the social discount rate, and implement the review starting in FY2027. On consolidating, reorganizing, and maintaining public infrastructure preventively, he was asked to make the discussed measures concrete, including mechanisms for the national government to support local government efforts.