When Fumio Kishida was campaigning ahead of the ruling Liberal Democratic Party's presidential election last month, he vowed to draft a large stimulus package and to redistribute wealth, all while hinting he would push back the government’s primary balance schedule and avoid a consumption tax hike for the next decade.

With Kishida taking over as prime minister, Finance Minister Shunichi Suzuki will be forced to balance Kishida's spending plans with the nation's poor fiscal health.

“To ensure market confidence, maintain the sustainability of social security and financial resources to counter emergencies like the ongoing pandemic, it’s necessary to pave the way for fiscal reconstruction,” Suzuki, Japan’s first new finance chief in almost nine years, said in an interview with media outlets on Thursday.