Katayama Briefs on Budget Estimates and Markets
Overview
At a November 2, 2026 press conference, Finance Minister Katayama explained efforts to improve revenue estimates and disclosure for the FY2027 budget. On the U.S. midterm elections, she outlined a market response aligned with the Japan-U.S. joint statement and declined to assess specific exchange-rate levels. She also said the authorities of both countries would stay in close contact to maintain orderly markets.
Key points
- Improve the accuracy and transparency of revenue estimates for the FY2027 budget.
- The policy is to act against disorderly market movements and excessive speculative activity.
- She declined to assess specific exchange-rate levels and said the two countries' authorities would remain in contact.
Overview
Following recommendations from the Council on Economic and Fiscal Policy, the Prime Minister instructed relevant ministers to accurately assess tax revenue estimates and non-tax revenue, improve their accuracy and transparency, and reflect them in budget planning. The press conference addressed estimates for the FY2027 budget and the market response ahead of the U.S. midterm elections.
The press conference was held on November 2, 2026. A question said the U.S. midterm elections were scheduled for the following day, November 3.
Impact
The minister said the government would act if markets became disorderly or movements excessively speculative, and expressed the intention to avoid sharp fluctuations and speculative or disorderly movements and maintain an orderly foreign exchange market.
Details
Methods for estimating tax revenue are continually improved, and efforts will be made to produce appropriate estimates in light of changes in economic and price outlooks. Information on the methods will be included in the Explanation of the Budget for Tax and Stamp Revenue submitted to the Diet when the budget is presented, and will also be published on the Ministry of Finance website. The minister said transparency would continue to improve through careful explanations.
Regarding exchange rates, the question referred to movement near 157 yen and the level three months after coordinated intervention with the United States. The minister declined to assess specific levels and said it was true that the rate had temporarily reached 164 yen. She referred to discussions at the Japan-U.S. summit and the finance ministers' telephone meeting at the end of September, and said the two authorities would remain in close contact in line with the joint statement.