TOKYO – Six months after Prime Minister Sanae Takaichi assumed office on October 21, 2025, her administration is pushing “responsible and proactive public finances” to bolster economic growth, though key policies like enhanced intelligence gathering remain stalled amid opposition resistance.
During an April 20 briefing at the Prime Minister’s Office, Takaichi reviewed growth strategy reports from Minister Minoru Kiuchi and directed officials to streamline materials, underscoring her focus on efficiency. She chairs the Headquarters for Japan’s Growth Strategy, established in November 2025, which tackles issues like managing foreign nationals and securing crude oil amid Middle East tensions. A supplementary budget of 18.3 trillion yen (S$146 billion), approved in December, supported these initiatives, while the inherited 2026 fiscal year budget passed on April 7.
Takaichi’s flagship bills face steep challenges in a divided Diet. A national intelligence council bill nears House of Representatives approval, but opposition parties decry planned anti-espionage laws as threats to public privacy, viewing them as linked. Resistance also mounts against reducing Lower House seats, part of the ruling coalition’s agreement, and Takaichi’s prized food consumption tax cut struggles for consensus in a February-launched social security council.
The Liberal Democratic Party (LDP)-led coalition holds a minority in the House of Councillors but commands over two-thirds in the Lower House after February’s landslide win, enabling bill overrides. Senior LDP figures argue public support justifies repassage, citing recent electoral backing, though veterans urge restraint to avoid backlash and smooth future deliberations. During 2026 budget talks, ruling parties invoked committee chair powers, sparking opposition fury.
Diplomatically, Takaichi notched successes with two smooth summits alongside U.S. President Donald Trump in October 2025 and March 2026. Yet ties with China have chilled over her Taiwan contingency comments, showing no thaw. Responding to Middle East unrest, she has ramped up calls with regional and Asian leaders to boost Japan’s profile, tying efforts to a revised “free and open Indo-Pacific” vision, her emerging diplomatic hallmark.
Once leaning on Shinzo Abe’s legacy, Takaichi now signals independence, with aides noting her aim to prove prowess in foreign policy.