Japanese Prime Minister says
securing stable funding sources for a defense spending boost is the responsibility of the current generation.
The government plans to secure funding by cutting other areas of spending and utilizing some surplus money and nontax revenue, but it is expected to fall short by some ¥1 trillion.
They hope to cover it by raising some taxes. A higher corporate taxes is seen as a viable option.
Then the government bonds is not their option.
But some conservative lawmakers had backed the bond issuance to expand the defense budget.
So opposition has grown among members of LDP.
And some dissenting voices have also emerged within the cabinet.
Kishida is close to the Finance Ministry and has emphasized fiscal health.
He wanted to make details on the tax hike plans.
But some LDP members supporting aggressive fiscal say the government should not implement tax hikes.
I agree with them.
The tax hikes would rob citizens of disposable income and further reduce domestic demand.
Anyway LDP lawmakers battle has been heated up.
Kishida might lose support from LDP members.