Japan’s Prime Ministerial Hopeful Motegi Seeks to Develop New Stimulus Package, According to Reuters

By Leika Kihara and Makiko Yamazaki

TOKYO (Reuters) – Toshimitsu Motegi, an official from Japan’s ruling party, expressed on Wednesday his intention to create a comprehensive stimulus package aimed at supporting the ongoing recovery of the economy as he announced his candidacy for the party leadership.

This move would follow the package implemented last November, which cost over 17 trillion yen (approximately $117 billion) to alleviate the impact of inflation and could further strain Japan’s already fragile finances.

Motegi declared at a press conference, "I will ensure that conditions fall into place in half a year where we can officially declare an end to deflation," as he launched his campaign for party leadership later this month.

As the Liberal Democratic Party (LDP) holds majority control in parliament, its leader is effectively positioned to become the prime minister.

In this prospective role, Motegi indicated his plan to implement a growth strategy that would allow the government to finance various initiatives, including higher defense expenditures, without increasing taxes.

He set a target of achieving nominal economic growth of around 2.5% initially, with aspirations for even higher growth rates to maintain positive real wages.

However, Motegi was cautious regarding the prospect of increasing Japan’s financial income tax, stating that it was "not the right policy direction."

Currently serving as the LDP’s secretary-general, Motegi has a wealth of experience in various cabinet roles, covering foreign affairs, trade, and economy.

Despite recent polls suggesting he may not lead the pack of expected candidates for the party leadership, some analysts consider him a potential contender for the finance minister position in a new government.