Japan to increase investment in human resources

The Cabinet has approved the first annual fiscal and economic policy blueprint that pledges aggressive investment in human resources.
By: | June 9, 2022

The blueprint uses many parts from former Prime Minister Shinzo Abe’s so-called “Abenomics” economic measures, involving aggressive fiscal stimulus, while falling short of providing specifics on how to achieve Prime Minister Fumio Kishida’s goal of promoting wealth distribution and addressing income inequality.

It aims to boost investments in four key areas – human resources, science, technology and innovation, startup companies, and green and digital technology – and will form the core of the campaign pledges of the ruling Liberal Democratic Party and its junior coalition partner Komeito in the House of Councillors election. The upper house election is expected to be held July 10.

While Kishida has boasted of efforts to promote wage hikes, the blueprint only said the government will continue those efforts and does not go so far as giving specific steps. His earlier pledge to review the capital gains tax, which is often criticised as benefiting the rich, was not mentioned.

Kishida said in his inauguration speech last year that he would review the tax system, but his government has made little progress on the issue after stock prices dropped following his remarks.

READ: Japan to offer more growth opportunities for startups

Instead, the blueprint said the government will compile by the end of 2022 a plan to prompt a shift of personal savings to investments as part of measures aimed at helping boost household assets, according to Kyodo News.