Prime Minister Fumio Kishida will take the ruling coalition's victory in the House of Councillors election as a sign to expedite efforts to work out economic measures.
Chief among these is coping with the issue of inflation, as prices continue to rise due largely to Russia's ongoing invasion of Ukraine.
Kishida also hopes to bring about his signature "new form of capitalism" policy, eyeing the compilation of a supplementary budget during an extraordinary Diet session this autumn.
Many difficult tasks lie ahead for his administration, including coordination over the fiscal resources needed to enhance the nation's defense capabilities, and balancing measures to deal with the novel coronavirus and reinvigorate economic activities.
"By properly tackling these big challenges, such as the novel coronavirus, the Ukraine situation, and measures to cope with soaring prices, I will make efforts to revitalize the Japanese economy," Kishida said on an NHK TV program Sunday night.
The number of seats the ruling coalition won in Sunday's election far exceeded the minimum target of 55 that Kishida had set to retain the bloc's majority in the upper house.
"The prime minister's humble and sincere political attitude has been strongly endorsed," said a key Cabinet member.
Kishida has cited as a key task the reinvigoration of the nation's economy battered by the COVID-19 pandemic. He intends to reshuffle his Cabinet and the LDP leadership as early as August.
According to public opinion polls taken by The Yomiuri Shimbun, the approval rating of the Kishida Cabinet has constantly hovered above the 50% line throughout the nine months since it was inaugurated. Yet, the high approval rating also has much to do with the fact that the administration has put weighty policy issues on the back burner.
The late former Prime Minister Shinzo Abe, who was shot to death Friday, will have a large impact on how the administration is run in the days ahead. Abe's administration was the longest in the postwar period. He had strong influence even after he stepped down, as he became the leader of the LDP's biggest faction.
Abe had called on Japan to spend "at least 2%" of its gross domestic product on defense, on par with nations that are members of the North Atlantic Treaty Organization. To fund this, Abe had advocated the issuance of government bonds and held various discussions within the party.
Regarding policy coordination with the LDP since Kishida became its president and the nation's prime minister, a senior party member said, "Abe had a clear vision of how he viewed the nation and would take steps boldly, whereas Kishida would put the brakes on, with the two subtly dividing their roles."
Kishida has made it clear that to realize his "new form of capitalism," he will double the outlays on "investment in human resources," such as through vocational training. While social security spending continues to increase, how to secure the resources for his signature policy will also become a focal point, together with funds for defense outlays.
Kishida's tenure as LDP president runs through September 2024, one year before House of Representatives members' terms expire.
"The achievements made in the two years up to the party presidential election will be important," said a person close to Kishida.
Read more from The Japan News at https://japannews.yomiuri.co.jp/
