Katayama says Japan undergoing biggest budget reform since 1945

Japanese officials are initiating a significant overhaul of the nation's budgetary framework, marking the most substantial shift in fiscal policy since the end of World War II. The government intends to consolidate the majority of its planned expenditures directly into the primary annual budget. By prioritizing this approach, authorities aim to reduce their historical reliance on secondary supplementary funding packages. This strategic transition is designed to improve fiscal transparency and streamline the overall national spending process. Policymakers believe these structural changes will lead to more disciplined and predictable economic management moving forward.

This reform signals a major departure from Japan's long-standing reliance on emergency fiscal measures, potentially stabilizing the country's long-term economic planning.