December 7, 2025

Japanese Prime Minister Sanae Takaichi, who advocates a "responsible and proactive fiscal policy," recently pushed the cabinet to approve a draft 18.3 trillion yen ($117 billion) supplementary budget for 2025 fiscal year to fund her massive economic package. Yet Japan's deep-seated economic strains remain unresolved.

With the yen sliding, government debt piling up and inflation running high, Japanese media outlets and experts argued that Takaichi's big-spending agenda is at odds with the country's current economic conditions, fueling market concerns about Japan's fiscal health. The package delivered scant results while risking inflicting further damage on the economy.

'Takaichinomics' is outdated

Since Takaichi took office, Japan's economic situation has continued to deteriorate, with downward pressure intensifying.

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