Prime Minister Takaichi pledges to end fiscal austerity and boost growth through multi-year budgets

Prime Minister Sanae Takaichi announced a policy shift to break with excessive fiscal austerity and boost long-term investment via a multi-year budget framework. This announcement, made on February 20, 2026, follows the landslide election victory of Sanae Takaichi on February 8 and signals a new direction for the ruling party and the Prime Minister Sanae Takaichi's administration. The move is intended to revive the economy of Japan JP by moving away from strict annual spending limits.