The draft shows that Japan will commit to significantly increasing spending in its economic stimulus plan.

Jin10 Data, November 12 — According to Reuters, the draft economic stimulus plan of Japan’s Prime Minister Fumio Kishida, seen on Wednesday, shows that the Japanese government will “not hesitate” to commit increased spending to support an economy that is about to emerge from stagnation. Although the draft does not specify the scale of spending, it calls for “bold and strategic” investments in crisis management and growth areas, indicating that the plan may include substantial expenditures. The draft indicates that the Japanese economy is transitioning from a phase prone to deflation and cost-cutting to a new stage, with the government pledging to “boldly implement necessary policies without hesitation.” According to the draft, the government will also promote investments in key growth sectors such as artificial intelligence, semiconductors, and shipbuilding. It is expected that the Kishida government will finalize a package later this month and prepare a supplementary budget for this fiscal year to fund some of the expenditures. Daiwa Securities analysts stated in a research report that, due to the ongoing need for fiscal support for the Japanese economy and the numerous areas in which the government has committed to investing, “the scale of aid will be quite large.” They added, “If the supplementary budget reaches 20 trillion yen (approximately $133 billion), we would not be surprised.”