Press "Enter" to skip to content

Japan’s PM Sanae Takaichi Launches Massive Economic Package

Sanae Takaichi officially took office on October 21 as Japan’s first female prime minister — a historic moment for the country.

However, her largely male cabinet and conservative policies have sparked mixed reactions among women and gender equality advocates. Takaichi, a long-time member of the ruling Liberal Democratic Party (LDP), appointed only two women to her 19-member cabinet, mirroring her predecessor’s record.

This move fell short of her earlier promise to ensure women’s representation comparable to that of Nordic nations. When asked about the imbalance, Takaichi defended her decision, saying she “prioritized equal opportunity” and assigned “the right people to the right positions.”

Analysts note that her options were limited since women make up only 13% of LDP lawmakers. The party has pledged to raise this figure to 30% by 2033. Despite the criticism, Takaichi’s rise marks a symbolic step for Japan, which continues to rank low among developed countries in global gender equality indexes.

Just a day after taking office, Takaichi turned her focus to the economy, preparing an ambitious stimulus package expected to exceed last year’s $92 billion. Government insiders revealed that the plan, valued at over 13.9 trillion yen ($92.19 billion), is designed to ease inflationary pressures and spur growth across key sectors.

The package will center around three pillars: tackling inflation, boosting investment in growth industries such as artificial intelligence and semiconductors, and strengthening national security. The government also plans to abolish the provisional gasoline tax rate to provide immediate relief from rising fuel costs.

In addition, Takaichi aims to expand local government grants, particularly targeting small and medium-sized enterprises (SMEs) that have struggled to benefit from existing tax incentives for wage increases. This aligns with her pledge for a “responsible proactive fiscal policy” that supports both households and businesses.

Following news of the upcoming stimulus, Japan’s Nikkei share index rebounded, while the yen steadied after early gains. The details of the package are still being finalized and could be officially announced as early as next month. To finance the measures, the government is drafting a supplementary budget for the current fiscal year ending in March. However, if spending surpasses initial estimates, Tokyo may need to issue deficit-covering bonds, raising concerns about fiscal discipline and long-term debt sustainability.

As Takaichi balances economic reform with social expectations, her leadership will be closely watched both at home and abroad. Japan now faces the dual challenge of reviving growth while addressing its persistent gender gap — a test that will define Takaichi’s historic tenure.

Served from Contabo · panel.213-136-92-99.nip.io · 2026-05-27 11:09:37 UTC