Japan will overhaul its budget process to more flexibly boost investment in growth areas and respond to crises, Prime Minister Sanae Takaichi’s first economic blueprint showed on Tuesday, underscoring her administration’s focus on reviving the economy.

Economic Blueprint

The blueprint repeatedly stressed the need to ensure Japan maintains market trust in its finances, Takaichi will face the challenge of funding her spending plans without adding too much to Japan’s already huge debt pile.

Japan will seek to work with the private sector to channel resources into strategic industries, with combined public and private investment projected to exceed 370 trillion yen ($2.28 trillion) through fiscal 2040, it said.

Through initiatives focused on areas such as AI, chips and space development, Japan will aim to boost gross domestic product (GDP) to nearly 1,100 trillion yen by fiscal 2040, the document showed.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.