Editorial

15:00 JST, December 27, 2025

To strengthen the economy, fiscal policy must also undergo reform. With the full-fledged arrival of an “economy with positive interest rates,” the government must recognize that it has entered an era where the substance of its budget will be scrutinized even more closely.

The government adopted its fiscal 2026 budget proposal in a Cabinet meeting. General account spending totals ¥122.3 trillion, an increase of ¥7.1 trillion over the initial fiscal 2025 budget. This marks the first time it has exceeded ¥120 trillion.

The administration of Prime Minister Sanae Takaichi seeks to realize “responsible and proactive public finances” and a strong economy. In the budget proposal, it has piled up growth and crisis management investments for flagship policies like semiconductor support. Reflecting the severe security........

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