As election looms, Ishiba pledges ¥1 quadrillion GDP by 2040

Japan Times

20 hours ago

Economic relief packages for present difficulties and economic goals for future prosperity are the strategies the ruling and opposition parties are employing ahead of the Upper House election next month, as they roll out their official campaign pledges.
Financial aid to help households deal with the high cost of consumer prices, particularly those for rice and agricultural products, is a major part of each party's formal set of promises to voters who need help now. But Prime Minister Shigeru Ishiba's Liberal Democratic Party is also announcing an ambitious economic growth target for the distant future.
'We aim to achieve a nominal gross domestic product of ¥1 quadrillion ($6.9 trillion) by 2040 and I have instructed party executives to make increasing the average income by more than 50% from current levels by then as our party's first pledge in the upcoming Upper House election,' Ishiba announced Monday night.
How, exactly, the LDP would achieve that was not made clear. The party plans to compile a more detailed policy platform next week.
Japan's nominal gross domestic product in 2024 was ¥609.4 trillion, according to Cabinet data, while the average annual private sector salary in 2023 was ¥4.6 million, according to the National Tax Agency.
To deal with present economic realities, the LDP and its coalition partner, Komeito, agreed Tuesday to include promises of cash payments in their respective Upper House campaign pledges, in response to recent consumer price increases.
The exact amount each household would receive and under what conditions are yet to be determined, although the amount promised in the LDP's platform could be in the range of the tens of thousands of yen per person.
Komeito, which has already announced its Upper House campaign pledges, is also promising to abolish the temporary gasoline tax rate of ¥25.1 per liter. It says the abolition date can be determined during year-end tax negotiations.
In the meantime, Komeito supports a continuation of current subsidies to lower gasoline prices and expanding a tax-exempt limit for commuting allowances for employees who commute by private vehicle.
The opposition parties are also gearing up for the Upper House race with a similar emphasis on pocketbook issues.
Constitutional Democratic Party of Japan head Yoshihiko Noda speaks to reporters in Tokyo on Friday. |
JIJI
On Tuesday, Constitutional Democratic Party of Japan leader Yoshihiko Noda announced his party's platform under a slogan of promising to protect voters from rising prices, especially those for daily necessities.
'We'll implement immediate measures in the form of a meal support grant to alleviate the burden of rising rice prices. A onetime payment of ¥20,000 per person, equivalent to half a year's worth of consumption tax on food items, will be provided. After that, we will implement a zero percent consumption tax on foodstuffs for one year and up to two years,' Noda said.
The CDP is also promising a review of Japan's rice policy to bring prices down, while emphasizing the importance of protecting both rice farmers and consumers.
In addition, Noda presented the party's plan for dealing with gasoline prices.
'Our aim is to abolish the provisional tax rate and achieve a reduction of ¥1,000 per 40 liters,' he said.
Other parties are now finalizing their election strategies, including the exact wording of their campaign promises. The date of the Upper House poll has not yet been announced, although July 20 appears to be the most likely. The current session of parliament is slated to end on June 22.