Photo/Illutration Prime Minister Sanae Takaichi delivers her policy speech at a Lower House plenary session on Oct. 24. (Koichi Ueda)

In her first policy speech at the Diet, Prime Minister Sanae Takaichi underscored her determination to create economic growth through aggressive public spending.

“We need to build a strong economy before doing anything else,” Takaichi, who is viewed as a security hawk and fiscal dove, said on Oct. 24. “We will strategically deploy fiscal spending, guided by the philosophy of ‘responsible proactive fiscal policy.’”

She said her administration aims to increase incomes, lift consumer confidence and raise corporate earnings, thereby generating more tax revenues without raising tax rates.

Takaichi emphasized that the immediate priority for her Cabinet is to mitigate the impact of the surging cost of living

She said her government intends to pass legislation to abolish the temporary gasoline tax during the current extraordinary Diet session that ends on Dec. 17 as one of the measures countering soaring prices.

Takaichi, who was elected president of the Liberal Democratic Party on Oct. 4, agreed to form a coalition government with Nippon Ishin (Japan Innovation Party) after Komeito, the previous coalition partner, decided to end its 26-year partnership with the LDP.

The 64-year-old inaugurated her Cabinet on Oct. 21 after she was elected Japan’s first female prime minister in the Diet.

In her speech, Takaichi, who is scheduled to meet with U.S. President Donald Trump in Japan on Oct. 28, outlined her initiatives to bolster defense capabilities.

Takaichi announced plans to revise three key national security documents next year ahead of schedule, which could pave the way for more defense spending in line with calls from the Trump administration.

She also said the government plans to achieve the target of raising the defense budget to 2 percent of gross domestic product in the current fiscal year, two years ahead of schedule, by earmarking additional outlays in a supplementary budget.

In her Cabinet, Kimi Onoda, minister in charge of economic security, was also tasked with overseeing policy regarding foreign nationals, a portfolio newly created for one of Takaichi’s policy priorities.

“Situations have arisen where people feel anxiety and unfairness over illegal acts and deviations from rules by some foreigners,” Takaichi said in her speech. “While drawing a clear line against xenophobia, we will respond firmly to such acts.”

She said the government will strengthen its central command functions on the matter and review rules on land acquisition by foreigners and other issues.

Touching on the administration of government, Takaichi stressed the significance of the new coalition government with Nippon Ishin.

“Without political stability, we cannot advance robust economic policies or strong foreign and national security policies,” she said.

In her policy speech, Takaichi indicated her intention to consider Nippon Ishin’s flagship policies, such as establishing a “secondary capital” capable of backing up Tokyo’s functions in the event of disasters and curbing social insurance premium burdens on the working-age generation.

The LDP and Nippon Ishin lack a majority in both Diet chambers, however.

Acknowledging that her administration will continue as a minority government, Takaichi said she is open to policy proposals from all parties and will engage in flexible and sincere discussions so long as they do not contradict the administration’s fundamental principles.