Japanese lawmakers are weighing sales of government stakes in some of the nation’s biggest companies to fund expanding defense costs. But doing so won’t be easy, given the need to reach a consensus within the government and, in some cases, a requirement to change laws.
While factors including higher-than-expected tax incomes have left Japan with a higher budget surplus, which could be used for defense spending, the government has admitted tax hikes can’t be avoided in the long run.
Yet Prime Minister Fumio Kishida’s administration has already pushed back a decision on when to raise taxes to cover defense costs. As support for Kishida remains around its lowest level since he took office, he is likely seeking temporary ways to stave off talk of the levy being increased.