Japan’s Govt to Submit Road Map for Growth Strategy in March, PM Takaichi to Announce in Upcoming Policy Speech

The Yomiuri Shimbun

16:19 JST, February 18, 2026

Prime Minister Sanae Takaichi is expected to announce in her policy speech on Friday that the government will present a public-private investment road map for its growth strategy in March, promoting bold investment and supporting international expansion by businesses in 17 strategic fields, The Yomiuri Shimbun has learned.

The Yomiuri Shimbun obtained a draft of the policy speech, which Takaichi is scheduled to deliver to both houses of the Diet on Friday.

The government plans to compile before summer its idea about the two-year consumption tax reduction limited to food items and to expedite the submission of related tax reform bills, according to the draft.

The consumption tax cut will be positioned as a temporary measure to ease the burden until the government introduces “refundable tax credits,” which combine income tax cuts and direct payments. The government will reiterate its policy of discussing the plan at a cross-party “national council.” Takaichi will emphasize that the government will not rely on issuing bonds to cover the financial resources

She will announce that the government will achieve a “strong economy” in which tax revenues naturally increase without raising rates. To advance her signature “responsible and proactive public finances,” she will vow to “break the trend of excessive austerity and insufficient investment in the future.”

The draft says that the government will reduce the government debt-to-GDP ratio and mentions clarifying specific indicators to secure market confidence.

Regarding the diplomatic policy of the “free and open Indo-Pacific” initiative, she will explain that the government will evolve its efforts strategically, noting that 10 years have passed since former Prime Minister Shinzo Abe first proposed the idea. The government aims to strengthen economic foundations, such as supply chains for critical materials, create opportunities for economic growth through public-private collaboration and expand security cooperation.

On its policy about foreigners, the draft says that the government will propose reviewing regulations on land acquisition by foreigners and others. With the “secondary capital” initiative included in the coalition agreement between the Liberal Democratic Party and the Japan Innovation Party in mind, Takaichi will also call for “urgent examination of the responsibilities and functions of the secondary capital.”

Regarding the abduction of Japanese people by North Korea, she will announce, “I want to achieve the return of all victims during my term,” expressing determination to “create a breakthrough without ruling out any options,” including a Japan-North Korea summit.