Takaichi announces the FY2026 budget has passed and is enacted, focusing on a strong economy.

Takaichi announces the FY2026 budget has passed and is enacted, focusing on a strong economy.

[Press Conference by Prime Minister Takaichi regarding the Passage of the FY2026 Budget and Responses to the Situation in the Middle East] Good evening, everyone. Today, the FY2026 budget was passed by the House of Councillors and has been enacted. I would like to express my sincere gratitude to all those involved for their dedicated efforts and cooperation. While it is regrettable that the budget could not be passed within the fiscal year, we have, with the understanding that “everything is for the peace of mind of the people and the building of a strong economy,” sought the cooperation of all those involved and benefited from their dedicated efforts. As a result, by responding sincerely to deliberations in the Diet, we believe we have been able to minimize, to the greatest extent possible, the risk of disruption to people’s daily lives. The FY2026 budget passed today is based on the concept of “responsible and proactive public finances.” While making strategic choices across the budget as a whole, it provides for bold increases in areas such as strategic investments that enhance resilience against potential crises and investments that promote growth, thereby contributing to the realization of a “strong economy.” Under the Takaichi Cabinet, we are advancing “budget formulation reform.” From the perspective of ensuring the predictability of government spending and supporting the initiatives of private-sector entities and local governments, we are working to allocate all necessary funds within the initial budget to the greatest extent possible. The FY2026 budget represents the first step in this effort. Specifically, we have appropriately reflected economic and price trends across the overall budget, including through revisions to medical and nursing care fees, as well as reviews and improvements of public procurement and public systems. We are also advancing key policies that are being implemented in a planned manner over multiple fiscal years with secured financial resources, including support for children and child-rearing, GX (Green Transformation), AI and semiconductors, and the strengthening of defense capabilities. Moreover, by making strategic choices across the budget as a whole and securing new financial resources, we have increased funding for a range of key policies, including measures to make high school education effectively free and fundamental reductions in the burden of school meal costs. As a result, the total amount of the general account budget has reached a record high of 122.3 trillion yen. At the same time, by making strategic choices across the budget as a whole, we have kept in check new government bond issuance for the general account below 30 trillion yen for the second consecutive year and reduced the government’s reliance on bond financing. We believe this budget achieves both a strong economy and fiscal sustainability. It is a budget aimed at ensuring that, in all 47 prefectures, people can live in safety wherever they reside, have access to necessary medical care and welfare services, receive high-quality education, and find places t