Strategic-Sector Investment: First Take on Fiscal Projections

Research evidence excerpt

Strategic-Sector Investment: First Take on Fiscal Projections

UpdateM

Government officially announces public-private investment

plan

On June 24, Prime Minister Takaichi convened a joint meeting of the Council on Economic

and Fiscal Policy and the Japan Growth Strategy Council, and announced the scale of

public and private investment in key products and technologies across 17 strategic sectors,

simulations of the medium- to long-term outlook for the economy and public finances

under the Japan Growth Strategy, and a policy package for the Regional Future Strategy.

These will be reflected in the “Basic Policy on Economic and Fiscal Management and

Reform 2026 (the so-called Honebuto Policy)” and the Japan Growth Strategy, both to be

approved by the Cabinet in July.

These materials are published on the Council on Economic and Fiscal Policy website

(https://www5.cao.go.jp/keizai-shimon/kaigi/minutes/2026/0624agenda.html [Japanese

only]). The contents are broadly in line with media reports, with no major surprises

compared to prior coverage (e.g., Japan Economics: Reports of JPY 370trn+ in Public-

Private Investment Across 17 Strategic Sectors (22 Jun 2026)). Remarks by Prime Minister

Takaichi at the meeting are also available on the Prime Minister’s Office website. In

particular, emphasis was placed on areas such as physical AI, all-optical networks,

quantum computing, rockets and launch sites, unmanned maritime vehicles, next-

generation ships, biopharmaceuticals, perovskite solar cells, plant factories, fusion energy,

and gaming, suggesting that budget allocations to these fields are likely to increase going

forward.

As Japan’s economy emerges from deflation and achieves sustained nominal GDP growth,