Fiscal Policy
May 14 – May 29, 2026 Updated May 29
Every published chapter of The Fold's coverage of Fiscal Policy, in one place — oldest to newest, updated as the story develops.
OECD calls Takaichi's zero food-tax plan "blunt and costly" as Tokyo misses fiscal target again
The OECD published its first survey of Japan since 2024 on Wednesday and singled out Prime Minister Sanae Takaichi's plan to zero the consumption tax on food as not cost-effective. Tokyo is on track to miss its primary-balance target for fiscal 2026.
Takaichi unveils $19 billion extra budget to cushion fuel and import costs
Japanese Prime Minister Sanae Takaichi told reporters on Monday that the government would assemble a 3 trillion yen supplementary package financed largely by stronger tax revenues, reversing earlier guidance against new spending after the Iran war pushed energy bills higher.
Takaichi unveils $19bn fuel-relief package while pledging no new borrowing as the BOJ is squeezed
Prime Minister Sanae Takaichi has announced a $19 billion supplementary package to subsidise fuel costs and ease cost-of-living pressures, while pledging that overall bond issuance will not rise. Her weak-yen strategy depends on the Bank of Japan holding back rate rises, even as Governor Kazuo Ueda warns about entrenched oil-driven inflation.