Japan OKs economic policy blueprint focused on aggressive spending shift

TOKYO - Prime Minister Sanae Takaichi's Cabinet approved Tuesday its first economic and fiscal policy guidelines, prioritizing aggressive fiscal spending in strategic areas to boost the economy but with no clear mention of fiscal consolidation.

The policy blueprint states the government will treat the next fiscal year from April as "the first year of responsible and proactive" spending and target a combined 370 trillion yen ($2.3 trillion) in public and private sector investment by fiscal 2040. The longer-term guidance is aimed at boosting predictability for businesses.