Finance Minister Shigeru Takaichi has announced a series of targeted fiscal measures aimed at accelerating Japan’s structural growth, reflecting renewed government optimism. The initiatives include increased funding for digital infrastructure and green technology, with allocations totaling ¥1.2 trillion over three years.
- ¥1.2 trillion allocated over three years for growth-focused public investments
- ¥450 billion dedicated to digital infrastructure and AI centers
- ¥750 billion committed to green energy subsidies and clean tech projects
- TOPIX index rose 2.4% following policy announcement
- Regional investments focused on Hokkaido and Kyushu to reduce urban concentration
- Target of 2.5% annual GDP growth by 2028
Finance Minister Shigeru Takaichi has unveiled a comprehensive economic expansion strategy centered on long-term productivity gains. The plan emphasizes public investment in next-generation technologies, particularly in artificial intelligence integration and renewable energy systems across regional hubs like Hokkaido and Kyushu. These efforts are designed to address persistent labor shortages and boost domestic innovation capacity. The government has allocated ¥450 billion specifically for upgrading broadband networks and establishing regional AI innovation centers. Additionally, ¥750 billion is dedicated to subsidies for private-sector clean energy projects, including hydrogen fuel cell development and offshore wind farms. This represents a 38% increase from the previous fiscal year’s green-tech budget, underscoring the administration's commitment to decarbonization goals. Market indicators have responded positively. Tokyo Stock Exchange’s TOPIX index rose 2.4% within two days of the announcement, with industrials and tech sectors leading gains. Japanese equities tracking infrastructure and sustainability themes saw inflows exceeding ¥650 billion in early trading, suggesting strong investor confidence in the policy direction. The moves also signal a shift toward proactive fiscal expansion, reversing earlier austerity measures. By targeting regions outside Tokyo, Takaichi aims to reduce economic disparities and stimulate localized growth, aligning with broader national objectives to achieve a 2.5% annual GDP growth rate by 2028.