The Cabinet approved Tuesday the first annual fiscal and economic policy guidelines under Prime Minister Fumio Kishida that pledge aggressive investment in areas such as human resources and decarbonization to spur growth.
While the guidelines included key policies to establish a positive cycle of growth and distribution of wealth as part of the "new form of capitalism" advocated by Kishida, it also stipulated a plan to increase defense capabilities in the wake of Russia's invasion of Ukraine.
The blueprint inherited many parts from former Prime Minister Shinzo Abe's so-called Abenomics measures involving aggressive fiscal stimulus, while falling short of providing specifics on how to achieve Kishida's goal of promoting wealth distribution and addressing income inequality.