Sanae Takaichi, a seasoned Japanese lawmaker viewed as a potential fiscal dove, has pledged a blend of income tax reductions and direct cash payments to households should she secure leadership of the ruling Liberal Democratic Party (LDP). Her policy platform, detailed ahead of the LDP leadership contest on October 4, positions Takaichi as a leading contender to replace outgoing Prime Minister Shigeru Ishiba.
Takaichi, who would become Japan’s first female prime minister if successful, is seen as a frontrunner alongside Agriculture Minister Shinjiro Koizumi. According to her published campaign promises, she would move swiftly to eliminate an additional gasoline tax and expand grants to local governments.
Her economic blueprint includes establishing a dedicated committee for screening foreign investments and exploring more robust controls over property acquisitions by foreign nationals in Japan.
Known for her opposition to Bank of Japan rate hikes, Takaichi has called for increased fiscal spending to support Japan’s fragile economic recovery. The Nikkei newspaper also reported that her policies include a gradual reduction of the national debt-to-GDP ratio.
Takaichi’s campaign launch follows a Bank of Japan policy decision to keep its benchmark rate at 0.5%, even as dissent within the board signaled the potential for winding down the institution’s ultra-loose monetary policy sooner than anticipated.
