Japanese Prime Minister Sanae Takaichi retained the core of her economic and security team in a limited Cabinet reshuffle on Sept 17, signalling policy continuity as her government pushes ahead with tax cuts, higher spending and defence reforms.
Chief Cabinet Secretary Minoru Kihara, Finance Minister Satsuki Katayama, Foreign Minister Toshimitsu Motegi and Defence Minister Shinjiro Koizumi kept their posts, alongside Economy, Trade and Industry Minister Ryosei Akazawa.
Economic growth strategy minister Minoru Kiuchi was also retained, reinforcing expectations that Takaichi will maintain her expansionary economic agenda despite concerns over Japan’s public finances and rising government bond yields.
The reshuffle comes as Takaichi pursues a planned reduction in the consumption tax on food from 8% to 1% for two years from April 2027. The government has yet to fully detail how it will cover the estimated five trillion yen annual revenue shortfall, fuelling concerns over fiscal sustainability.
Japan is simultaneously grappling with inflation, a weak yen and higher bond yields, while markets remain sensitive to the government’s spending plans.
On security policy, Koizumi will continue overseeing work on revisions to Japan’s national defence strategy and the government’s push to increase defence spending.
Takaichi also brought coalition partner Japan Innovation Party further into the government, appointing Hiroshi Nakatsuka as minister in charge of regulatory reform.
The changes leave much of Takaichi’s senior leadership intact, allowing her administration to maintain continuity as it advances its economic, fiscal and security agenda.
