Takaichi targets Japanese foreign currency reserves to fund food tax suspension plan
Takaichi may tap Japan's foreign reserves to fund a two-year food tax suspension. This strategy seeks to cover a massive revenue gap without issuing new debt.
Insights:
Following her decisive election victory, Prime Minister Sanae Takaichi is pursuing a plan to suspend the 8% consumption tax on food for two years. To cover the estimated annual revenue shortfall of about 5 trillion yen, the Japanese government is considering tapping into Japan's 
JP $1.4 trillion foreign currency reserves, including the special government account for currency reserves. As of February 9, 2026, this proposal is under discussion, with Takaichi pledging to accelerate deliberation on the matter.
JP $1.4 trillion foreign currency reserves, including the special government account for currency reserves. As of February 9, 2026, this proposal is under discussion, with Takaichi pledging to accelerate deliberation on the matter.
