Cabinet approves Kishida’s ‘new form of capitalism’ initiatives

The Yomiuri Shimbun

16:00 JST, June 8, 2022

The grand design and action plan for Prime Minister Fumio Kishida’s “new form of capitalism” was approved during a Cabinet meeting Tuesday.

The Basic Policy on Economic and Fiscal Management and Reform was concurrently given approval by Cabinet members.

“After the House of Councillors election, we’ll put the plan into effect to move these policies forward,” Kishida said, referring to the upper house poll that is set to be held in July. “Japan will take the lead on structural socioeconomic changes.”

After taking office, Kishida had stressed the distribution of wealth as part of his plan, but the latest grand design emphasizes a growth strategy.

The four areas to be prioritized are investment in people; science, technology and innovation; support for startups; decarbonization and digitization.

As for the basic policy, the tense international situation means that the government aims for the drastic enhancement of defense capabilities “within five years.”

Unlike the basic policies up to last year’s, the government did not specify a fiscal 2025 target for bringing the primary balance for the central and local governments back in the black.

The Cabinet also approved a regulatory reform implementation plan and the basic policy for Kishida’s Vision for a Digital Garden City Nation, which aims to revitalize regional areas through digital technology.