Provisional translation

Regarding the Comprehensive Economic Measures for Overcoming Price
Increases and Revitalizing the Economy

October 28, 2022
Cabinet Decision

The Attachment sets forth the Comprehensive Economic Measures for Overcoming
Price Increases and Revitalizing the Economy.

(Attachment)

Comprehensive Economic Measures for
Overcoming Price Increases andRevitalizing the Economy

October 28, 2022

Table of Contents
Chapter 1. The Government’s understanding of the current stateof the economy and its basic stance on economic
measures ................................................................................... 1
Chapter 2. Specific measures aimed at revitalizing the economy ......... 7
I.

Addressing inflation and raising wages............................................................... 7
1. Support for citizens and businesses in a difficult time due to hikes in energy
and food prices ...................................................................................................... 7
2. Making the economic structure more resistant to energy and food crises ............ 9(1) Establishing a secure and resilient energy supply system......................................... 9(2) Establishing a secure and resilient food supply system .......................................... 11

3. Promoting a continuous increase in wages and supporting SMEs ..................... 12(1) Promoting an increase in wages ............................................................................. 13(2) Setting the stage for SMEs to increase wages ........................................................ 14

II. Recovery and Reinforcement of Local “Profitability” Utilizing theDepreciation of the Yen ....................................................................................... 16
1. Restoring demand lost due to the pandemic and revitalizing local
economies ........................................................................................................... 16(1) Restoring the status of Japan as a tourism-oriented country................................... 16(2) Revitalizing local economies .................................................................................. 17

2. Taking advantage of a weak yen to make the economic structure stronger ....... 19(1) Enhancing the capacity to produce articles in demand from overseas andincreasing the volume of export ............................................................................. 20(2) Drawing back corporate inward investment and increasing foreign direct
investment ............................................................................................................... 20(3) Increasing the volume of export from SMEs .......................................................... 22(4) Increasing the export of agricultural, forestry, and fishery products ...................... 23

III. Acceleration of a “New Form of Capitalism ..................................................... 23
1. Drastic reinforcement of “investment in human capital” and labor
reallocation to growing sectors: Integrated reform for structural wage
increases .............................................................................................................. 23(1) Strengthening investment in human capital and facilitating labor reallocation
24(2) Promotion of diverse work styles and corporate governance reforms related
to human capital...................................................................................................... 26(3) Doubling of asset income ....................................................................................... 27

2. Promoting bold investments in growing sectors ................................................. 28(1) Science, technology, and innovation....................................................................... 28

(2) Acceleration of startups .......................................................................................... 30(3) GX (Green transformation)..................................................................................... 32(4) DX (Digital transformation) ................................................................................... 34

3. Realization of inclusive society .......................................................................... 36(1) Measures to address declining birthrate and support for children and childrearing households .................................................................................................. 37(2) Active participant of women .................................................................................. 38(3) Measures against loneliness and isolation, and support for people facing
difficulties such as the employment ice age generation.......................................... 39

IV. Ensuring Public Safety and Security, Including Disaster Prevention and
Mitigation, Promoting National Resilience, and Responding to Changes
in the Diplomatic and Security Environment ................................................... 40
1. Reinforcement of pandemic response in the coexistence with COVID-19 ........ 40(1) Reinforcement and prioritization of healthcare system and support forprotecting employment and lives ............................................................................ 40(2) Prevention of spreading infections by vaccination and preparation for the
next wave ................................................................................................................ 41

2. Disaster risk reduction and enhancement of national resilience ......................... 42
3. Acceleration of reconstruction and recovery from natural disasters .................. 44
4. Measures against changing diplomatic and national security environment ....... 45(1) Diplomacy and security .......................................................................................... 45(2) Economic and food security ................................................................................... 46

5. Ensuring people’s safety and security ................................................................ 47
V. Preparation for Future Shocks .......................................................................... 48

Chapter 1. The Government’s understanding of the current
state of the economy and its basic stance on economic
measures
Japan’s economy suffered a massive slump due to COVID-19 in the spring of 2020. The
Government has since taken pinpointed measures in consideration of factors involved in
the infectious disease. Led by the Government’s With-COVID policy since early spring
this year, social and economic activities are gradually getting normalized, with recovery
observed in service consumption and other metrics.
Meanwhile, as the prices of energy, food, and other daily commodities are rising due toglobal hikes in the prices of raw materials on the back of Russia’s invasion of Ukraine
and the depreciation of the yen, there is concern that the decrease in nominal income andlower consumer sentiment will damp consumption, leading to a further decline incorporate earnings and resulting in slowdown in business investment among othernegative impacts. Concerns over global recession are also growing, as seen in downward
revisions made by one international organization after another to their outlook for global
economy next year, with central banks in Europe emphasizing the stance to counter
inflation and accelerating their tight monetary policies, as well as with, in China, the ZeroCOVID policy being expected to take a toll in its economy in addition to downturn in thereal estate market.
As described so far, circumstances surrounding the Japanese economy are becoming more
and more severe. The Government commits itself not only to providing solid support for
the livelihoods of citizens and business activities in Japan so that its economy will survive,
but also to taking it to a higher level of performance toward sustainable growth. The
commitment calls on the Government to take comprehensive measures, under the slogan
of a “New Form of Capitalism,” with a focus on “addressing price hikes and thedepreciation of the yen,” “bringing a structural increase in wages,” and “promoting
investment and reform needed for growth.”(Addressing price hikes and the depreciation of the yen)Prices are soaring around the world. In Japan, the depreciation of the yen is another factor,
in addition to higher import prices, behind the current cost-push inflation mainly in energy
and food prices. In order to tackle the surge in the prices of daily necessities, theGovernment developed the “Comprehensive Emergency Measures (for the time of
COVID-19) to Address Soaring Crude Oil and Commodity Prices” 1 in April 2022 andhas responded with mobility to the situation through the use of contingency funds
depending on the state of commodity prices and the economy. As electricity prices arelikely to be raised in the spring of 2023, however, the Government needs to adopt drastic
measures for directly mitigating the economic impact on households and the burden of
businesses with no means for price pass-through in order to prevent slowdown in
consumption and investment that would otherwise put the brakes on economic upturn.
The Government takes forward-looking and effective measures seamlessly and nonstop,
0F

1

Approved at a cabinet meeting held on April 26, 2022, on matters concerning soaring crude oil and commodity
prices.

1

in addition to those hitherto taken, and protects the livelihoods of citizens and businessactivities against the current inflation.
Japan’s high dependence on overseas fossil fuels and other resources has long resulted inincome drain from the country whenever challenged by hikes in import prices. In orderto overcome such vulnerability of the country’s economy and transform its structure into
something more resistant to energy and food crises, the Government drastically intensifies
its efforts to reduce energy consumption on the part of households and businesses,
maximizes the use of zero-emission sources of power, reduces the use of chemicalfertilizers, and promotes the domestic production of fertilizers, fodder, cereal crops, andthe like.
At the same time, the Government pushes forward with strong policies that take the best
advantage of the currency depreciation and share its benefits with citizens. In order torevitalize local economies, the Government revamps demand in the industries that havesuffered a slow recovery from the pandemic, including the one for inbound and domestic
tourism and other recreation activities. With recent changes in international political andeconomic affairs making it imperative to realign supply chains, Japan is more and more
expected by overseas countries to serve as their supplier of strategic articles, such as
semiconductors and batteries. Now that a weak yen has significantly improved the costfeature of Japan as an industrial location, the Government enhances, with momentum, thecountry’s capacity to produce such articles and expand their export volume. The
Government also promotes the export of agricultural, forestry, and fishery products andprovides strong support for SMEs to foray into overseas markets beyond their local
regions. By taking those measures that capitalize on the depreciation of the yen, theGovernment seeks to strengthen the country’s economic structure.
(Bringing a structural increase in wages)
The best remedy for the current inflation is a continuous increase in wages thatsufficiently offsets hikes in prices. It is particularly important to make such wage increase
movement reach SMEs, because they employ some 70% of workers. The Government
intensifies its support for SMEs that venture to increase their employee wages despite
tough business conditions, apart from promoting their price pass-through. For the wage
increase movement to continue and grow, the Government seeks to realize a “structural
increase in wages,” in other words a structure that enables companies to hire highlyskilled workers through pay rise and thereby improve productivity and raise wages again
thanks to the higher productivity. In tackling the imperative to raise wages, theGovernment also seeks to bring higher mobility to labor reallocation and promotes larger
investment in people, as the time of escalating inflation calls for the integrated reform of
these three.
(Promoting investment and reform needed for growth)
Putting the Japanese economy on the track for a higher level of performance andsustainable growth requires discontinuous green and digital innovations that will help
resolve social issues, in addition to a New Form of Capitalism with a capability to use
such innovations as an engine for growth. The Government therefore accelerates its public
investment with a particular focus on the four domains of science/technology/innovation,2

startups, GX (green transformation), and DX (digital transformation) and uses that
acceleration as a stimulant to give rise to large scales of private investment. The
Government also aggressively pushes forward with its regulatory and institutional reform
agenda and thereby prompts the renewal of the country’s systems, including its economic
and social structures.
Based on the understanding as described so far and in light of the eminent global recession
risk, the Government has developed these Comprehensive Economic Measures herein.
Through the measures, the Government seamlessly addresses changes in economic
circumstances, including the recent inflation, and accelerates the “New Form of
Capitalism” and revitalizes the economy. The measures are designed to use all policy
instruments available, such as budget and taxation as well as regulatory and institutional
reforms, and built on the following four pillars.
(Pillar I. Addressing inflation and raising wages)
By adopting drastic measures of the first kind with a focus on the major factor behind
inflation, the Government protects the livelihoods of citizens and business activities inJapan. To be more specific, the Government tackles hikes in energy and food prices, witha primary focus on the former, as electricity prices are likely to soar in the spring of 2023.
The Government takes measures that will directly mitigate the impact of higher electricity
prices on households and on businesses that have no means for price pass-through.
Moreover, the Government reduces Japan’s degree of dependence on overseas fossil fuels,
raw fertilizers, and food and thereby seeks to transform Japan’s economic structure into
one that will withstand energy and food crises. To be more specific, the Government
maximizes the use of zero-emission power sources, drastically intensifies its support forenergy-saving investment, and strongly promotes the domestic production of fertilizers
and agricultural products among other goods. The Government also promotes a generalincrease in wages through all possible means, such as: further incentive intensification
for pay rise in a subsidy program for SMEs; stricter execution of the “Anti-MonopolyAct” 2 and the “Subcontract Act” 3 with an eye to embedding price negotiation and pricepass-through as regular trade practices; the thorough observance of the principle for equalpay for equal work; and the redress of wage discrepancies between men and women.
1F

2F(Pillar II. Recovery and Reinforcement of Local “Profitability” Utilizing the Depreciationof the Yen)
Following the recent easing of the COVID-19 border control measures, the Government
launches campaigns to strategically promote Japan’s tourism and seeks to give extra value
to the industry and thereby seeks to revive the inbound demand of five trillion yen thathas been lost due to the pandemic. The Government also stimulates demand for domestic
tourism and other recreation, besides promoting culture, arts, and sports, in order torecover demand for all those activities to pre-pandemic levels and revitalize local
economies. The Government realigns Japan’s supply chains for strategic articles such as
semiconductors and batteries to enhance the country’s capacity to provide such articles
for overseas countries and meet their expectations in Japan as their supplier. Also as a2
3

Act on Prohibition of Private Monopolization and Maintenance of Fair Trade (Act No. 54 of 1947)
Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors (Act No. 120 of 1956)3

measure for strengthening the country’s capacity for domestic supply and increasing thevolume of exports, the Government provides drastic support for Japanese companies tomake inward and “offensive investment” and construct new production sites in Japan or
return their production sites back to Japan, apart from seeking to increase direct
investment in Japan from foreign companies. Moreover, the Government strengthens
Japan’s economic structure by drawing overseas demand for Japanese agricultural,
forestry, and fishery products. In order to increase the country’s export of such products,
the Government establishes producers who specialize in export products, introduces asystem to support their export, and increases the volume of exports from SMEs throughmeasures such as close-following expert support and alignment with export houses.
(Pillar III. Accelerating the “New Form of Capitalism”)
Since people is the driving force for discontinuous innovation, the Government
collaborates with the private sector to promote investment in reskilling and in growing
areas and thereby seeks to bring a structural increase in wages and strengthen Japan’s
power for growth. To be more specific, the Government drastically reinforces public
support for investment in people by increasing the support package to a level of one
trillion yen for the next five years and implements reforms in the labor market, includinga shift from the currently-dominant seniority-based wage system to a performance-based
wage system that will fit in the Japanese workplace culture, apart from seeking to upgrade
the skills of workers and strongly promoting their migration to growing areas.
Furthermore, the Government promotes, among other measures, the realignment offaculties at universities and technical colleges, with a view to luring students to digital,
green, and other growing areas beyond the boundary between liberal arts and sciences.
Moreover, the Government develops and implements a “Doubling Asset-based IncomePlan” to divert cash and deposits owned by individuals to investment and thereby seeks
to create a virtuous cycle in which the benefits of higher enterprise values keep reachinghousehold accounts in addition to higher wages.
The Government joins hands with the private sector to make bold investment in growing
areas. To be more specific, the Government accelerates public investment in the fourdomains of science/technology/innovation, startups, GX, and DX as a stimulant to attract
larger private investment.
Ahead of the “Startup Development Five-Year Plan,” the Government enhances the
supply of funds aimed at supporting startups to secure human resources and build
networks which are key factors in the start-up phase, and also aimed at helping them growtheir business, apart from promoting the diversification of their business deployment andexist strategies.
The Government provides support for scientific and technological research that will
directly benefit the national interest, and reinforces local core universities and others
involved in distinctive studies, apart from enhancing support aimed at developing young
researchers.
The Government develops a 10-year roadmap on GX. Moreover, ahead of the launch of
the roadmap, the Government implements some economic growth measures as part ofgovernmental investment based on the roadmap, all the while considering the necessityof tackling the current hike in energy prices. Such measures will include those aimed at4decarbonization and others designed for the innovation of technologies that will prompt
economic growth and higher inward investment.
Apart from enhancing Japan’s capacity to supply cutting-edge semiconductors andpromoting strategic investment in the development of the technology to produce nextgeneration semiconductors among other state-of-the art technology, the Government turns
the “Vision for a Digital Garden City Nation” into reality, intensifies the efforts topromote the “My Number Card” and improve its user-friendliness, and drives forward
DX in the fields of medical care, nursing care, and education.
Toward the resolution of social issues, the Government increases support for children andfamilies with small children as well as drives forward initiatives aimed at creating an
inclusive society, such as those for empowering women and tackling loneliness andisolation. The Government also continues to implement the package of measures forproviding close-following practical and financial support throughout the period frompregnancy to child-bearing and then to child-rearing with a focus on newborns aged 0 to
2 years for whom support has been lax.
(Pillar IV: Ensuring the safety and security of citizens)
In order to enable social and economic activities to be done in a manner as close as
possible to the pre-COVID time in accordance with the With-COVID policy, theGovernment strengthens Japan’s medical care system and intensifies its capability torespond to infectious disease, including the development and practical use of remedies.
In order to protect the lives of citizens and their property from natural disasters that havebeen occurring at an increased rate and scale as well as from antiquated infrastructures,etc., the Government continues to promote initiatives based on the “Five-Year
Acceleration Measures for Disaster Prevention, Disaster Mitigation, and Building
National Resilience” 4 and goes forward with the consideration on the next-term basic
plan to implement additional initiatives. The Government continues to commit itself toreconstruction after the Great East Japan Earthquake and other earthquakes and to
recovery and reconstruction after other natural and non-natural disasters. Besides driving
forward initiatives designed to respond to changes in the diplomatic and security
environment surrounding Japan, the Government seeks to strengthen the country’s
economic security by providing support for the stable supply of important articles and forthe development of important technologies. The Government also seeks to replace
overseas-sourced production materials with alternatives, reduce the use of such materials,
increase the domestic production of foodstuffs, many of which have been imported, andexpand the use of domestic-produced foodstuffs, all in order to strengthen the country’s
food security. Moreover, the Government works with the private sector in the R&D and
infrastructure improvement fields to establish a system that will strengthen the country’s
security in a comprehensive manner. The Government also works on measures for
ensuring the safety of children.
3F

The Government increases the amount of the “Contingency Funds for Preparedness
against COVID-19 and Steep Rises in Crude Oil Prices and the Cost of Living” in orderto keep the country well-prepared for the spread of the coronavirus and for inflation.
4

Approved by the cabinet on December 11, 2020.

5

Moreover, as concerns over global recession are mounting, the Government newly
establishes the “Contingency Funds for Economic Preparedness in Light of the Situationin Ukraine (working title)” in order to enable flexible and resilient response to a possible
economic crisis that might occur due to a change in the situation in Ukraine or in otherinternational affairs or that might be triggered by a major cold wave or other disaster.
The Government promptly formulates the second supplementary budget for fiscal 2022
that endorses these Comprehensive Economic Measures based on which those funds areto be used, and makes every effort toward early passage of the budget. In formulating thesecond budget, the Government makes good use of the current interest rate andaggressively resorts to means in place for the fiscal investment and loan program in order
to use all policy instruments available, such as regulatory and institutional reforms as well
as taxation revisions, and thus achieve the intended comprehensiveness for theseComprehensive Economic Measures. The Government also works to redress issues
associated with the single-fiscal year formula adopted for the country’s fiscal
administration.
The Government continues to share its understanding of the state of the Japanese
economy and closely works with the Bank of Japan to achieve a proper policy mix offiscal and monetary policies. The Government expects the Bank of Japan to pay due
attention to the influence of changes in the money and capital markets and use its
monetary policy adequately for the purposes of achieving the price stability target andmaintaining the stability continuously and stably.

6Chapter 2. Specific measures aimed at revitalizing the
economyI. Addressing inflation and raising wages
1. Support for citizens and businesses in a difficult time due tohikes in energy and food prices
In order to address the recent inflation problem, the Government has been taking flexible
and multi-layered measures, including those focused on holding down energy and foodprices and supporting households with low income that have been hit the hardest.
The Government has held down the soaring gasoline price to be around 170 yen when it
would have otherwise hit around 200 yen. The Government continues to implement themeasure designed to mitigate steep rises until the end of the first half of fiscal 2023. Moreprecisely, the Government implements the measure, while gradually adjusting the upper
limit on the grant, for the period from January until the end of May 2023 as well, and thenin June 2023, starts reducing the grant in phases, all the while strengthening the country’s
preparedness against the risk of price escalation 5.
4F

In September 2022, the Government used contingency funds and others to adopt
additional measures for providing a “push-type” cash handout 6 for households with low
income and providing a grant, etc., that can be flexibly used at the discretion of the local
government for the purpose of reducing the burden of electricity and gas prices on
consumers 7 . The Government, together with local governments, continues to provide
prompt and detailed support for all municipalities through the temporary grant forregional revitalization and other programs.
5F

6F

During the first half of fiscal 2023, the Government takes a bold measure in an
unprecedented manner in order to directly mitigate the impact of an electricity price hikelikely to occur in the spring of 2023 on households and on businesses with no means forprice pass-through. This measure is to be taken through the use of monthly bills issued byelectricity retailers. The measure provides a higher amount of support for households thanbusinesses 8 . To be more specific, the Government practically shoulders an averageincrease in electricity fees that is expected in the beginning of fiscal 2023. The
Government shrinks, however, the amount of the support in September 2023 to ensurethat the measure will not run counter to the efforts for decarbonization. All the while, theGovernment drives forward a structural reform on the electricity market, in tandem withpromoting the saving and recycling of energy and the use of nuclear power, and thereby
accelerates GX. The Government initiates the structural reform project in the spring of
7F

5
6
7
8

The subsidiary rate for the portion of 25 yen or less is to be lowered gradually, while the rate for the portion of
more than 25 yen is to be raised step by step.
Emergency Support Grant to Tackle Hikes in Electricity, Gas, and Food Prices (854 billion yen)
Special Grant for Local Governments to Tackle Hikes in Electricity, Gas, and Food Prices (600 billion yen)
For low-voltage service users such as homes, a support of 7 yen per kWh (approx. 20% of the current bill) is to beprovided; for high-voltage service users such as corporate enterprises, a support covering the FIT surcharge (3.5
yen per kWh) is to be provided.

7

2023 and implements it as soon as practicably possible, ideally in January 2024.
The Government takes an appropriate measure for addressing an increase in the urban gas
prices, while giving consideration to the price hike trend, the business structure, and abalance with the support for electricity bills. To be more specific, the Government
provides homes and businesses with support of an amount corresponding to an increased
burden due to raised urban gas prices 9. As for LPG, the Government takes measures thatwill help prevent the price from rising, such as one for streamlining the distribution
process.
8F

For a standard household 10, all these measures for mitigating the impact of steep rise inelectricity, urban gas, and fuel oil prices will reduce the burden of 45,000 yen in total forthe period from January to September 2023.
9F

The Government has also taken measures to tackle increases in food prices, including thedeferment of the government resale price for export wheat and a measure designed tohold down an increase in the cost of compound feeds. In addition to these measures, theGovernment continues to take measures aimed at controlling hikes in food prices andothers deemed necessary to mitigate impact on business management in the agriculture,
forestry, and fishery sector. The Ministry of Agriculture, Forestry and Fisheries intensifies
its initiatives for food loss reduction and provides support for food banks that offer
groceries to Kodomo Shokudo (children’s cafeterias), etc., apart from supporting the
Kodomo Takushoku program (for delivering food, etc., for needy families with children)
and arranging places for Kyoshoku (sharing meals). The Ministry joins hands with otherrelevant ministries and agencies to provide food support for citizens in need. Moreover,the Government provides, via food banks, government-reserve rice for Kodomo Shokudo,etc., for free of charge.
For SMEs that have been finding themselves in a difficult time due to the pandemic
coupled with the recent inflation, the Government enhances its refinancing program andalso supports their financing through measures such as requesting public and private
financial institutions to make flexible change to their terms.
The Government continues to properly, timely, and flexibly use contingency funds if it
unexpectedly finds the budget to be short for necessary expenditures due to inflation.
NHK is considering cutting the viewing fee by 10% or more in October 2023. The
Government properly responds to it according to the Broadcasting Act 11.
10 F

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Measures for mitigating steep rises in electricity prices (Ministry of Economy, Trade andIndustry)
Measures for mitigating steep rises in gas prices (Ministry of Economy, Trade andIndustry)
Subsidy for streamlining petroleum gas distribution toward retail price reduction(Ministry of Economy, Trade and Industry)
Subsidy for promoting the introduction of petroleum gas facilities toward retail price

A support of 30 yen per m3 is going to be provided for homes and for other users such as businesses using an urban
gas service for less than 10 million m3 per year.
10 A standard household is a household with two or more people that on a monthly basis uses 400 kWh of electricity,
30 m3 of gas, 35 L of gasoline, and 15 L of heating oil.
11 Act No. 132 of 1950.
9

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reduction (Ministry of Economy, Trade and Industry)
Project to mitigate steep rises in fuel oil prices (Ministry of Economy, Trade andIndustry)
Project to mitigate steep rises in fuel prices for taxi operators (Ministry of Land,
Infrastructure, Transport and Tourism)
Project to create safety nets for fishery businesses (Ministry of Agriculture, Forestry and
Fisheries)
Measures against hikes in horticulture fuel prices (Ministry of Agriculture, Forestry and
Fisheries)
Emergency measures against hikes in feed compound prices (Ministry of Agriculture,
Forestry and Fisheries)
Emergency measures for food loss reduction and for supporting food banks, andpromotion of food and nutrition education (Ministry of Agriculture, Forestry and
Fisheries)
Support project for the development of local networks for children’s future (Grant for
Supporting Children’s Future) (Cabinet Office)
Joint model project with NPOs to support the creation of places for children (Ministry of
Health, Labour and Welfare)
Emergency support benefits for tackling hikes in electricity, gas, and food prices (Cabinet
Office)COVID-19 temporary subsidy for regional revitalization (Cabinet Office)Financing support by Japan Finance Corporation and others (Ministry of Finance,
Cabinet Office, Ministry of Economy, Trade and Industry, Financial Services Agency,
Ministry of Health, Labour and Welfare, and Ministry of Agriculture, Forestry and
Fisheries)
Subsidy for promoting the conservation of specified populated remote territorial island
areas and local communities (Cabinet Office)Research and enlightenment on products related to daily living, utility charges, etc.
(Consumer Affairs Agency)
Publicity concerning the government’s key policies, including measures against pricehikes (Cabinet Office), etc.

2. Making the economic structure more resistant to energy
and food crises(1) Establishing a secure and resilient energy supply system
Disruption in energy markets around the world and international insecurity in energy
supply in the wake of Russia’s invasion of Ukraine have been a reminder that Japanneeds to strengthen its energy supply and security. Hikes in energy prices, coupledwith the depreciation of the yen, have raised import prices, resulting in the outflow
of income from the country on one of the largest scales ever.
In order to stably secure energy resources, the Government must make the economy
less vulnerable to influence from international affairs or any state of internationalmerchandise markets. By drastically intensifying measures aimed at saving energy
consumption on the part of businesses and homes as well as maximizing the use of9

zero-emission energy resources, the Government reduces the country’s dependence
on overseas fossil fuels and establishes an energy supply system that is more secureand resilient against an energy crisis.
As a key measure for the immediate future, the Government heightens its
involvement in the procurement of LNG. To be more specific, the Government
supports securing strategic surplus stock while it reinforces its alignment with Asian
countries.
In order to drastically intensify energy-saving efforts and investment on the part ofbusinesses and homes, the Government imposes restrictions in an integrated mannerwith support measures. For the next three years, the Government provides intensive
support for SMEs, in particular, to unearth their potential demand for energy-saving
investment in such a manner that the support will match their multi-year investment
plan. Meanwhile, the Government intensifies its support for households to reduce
their energy consumption through measures such as renovating one’s house toimprove the thermal insulation performance and introducing a high-efficiency water
heater.
For the purpose of making renewables a core power source and achieving powersystem stability at the same time, the Government works on the output stabilizationof renewables through measures such as installing batteries next to renewable-based
power generation systems, installing grid-scale batteries, and increasing the Demand
Response capacity. Toward the end of 2022, the Government accelerates expert
discussions on, among other topics, the resumed operation of a dozen nuclear power
plants and the development and construction of next-generation innovative furnaces.
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Initiative for LNG supply stabilization (Ministry of Economy, Trade and Industry)
Project to rebuild the service station sector and strengthen its business operations(Ministry of Economy, Trade and Industry)
Subsidy for streamlining petroleum gas distribution toward retail price reduction(Ministry of Economy, Trade and Industry) [Afore-cited]
Subsidy for promoting the introduction of petroleum gas facilities toward retail pricereduction (Ministry of Economy, Trade and Industry) [Afore-cited]
The project “Support for High-efficiency Installations for Facilities with Targets (SHIFT)”(Ministry of the Environment)
Enhancement of subsidies for renewing energy-saving facilities and diagnostics(Ministry of Economy, Trade and Industry)
Project to support the introduction of user-led solar power generation and a battery for
use with renewable-based power generation (Ministry of Economy, Trade and Industry)Support for the introduction of decentralized energy resources toward wider introductionof renewables (Ministry of Economy, Trade and Industry)
Promotion of community decarbonization and the introduction of renewables (Ministryof the Environment)
Support designed for metal and plastic recycling facilities to develop, verify, andintroduce technology and aimed at enhancing the country’s resource circulating system(Ministry of Economy, Trade and Industry; Ministry of the Environment)
Project to promote private sector efforts toward transition to renewables and resilienceenhancement (Ministry of the Environment)

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Project to Accelerate Home Renovation for Heat Insulation (Ministry of theEnvironment)
Project to Promote the Introduction of Cutting-Edge Equipment for Housing Heat
Insulation Performance, etc. (Ministry of Economy, Trade and Industry; Ministry of theEnvironment)
Project to Promote Household Energy Saving through the Introduction of HighEfficiency Water Heaters (Ministry of Economy, Trade and Industry)
Project to Support the Introduction of High-Performance Ventilation Systems for the
Decarbonization and Higher Resilience of Architectural Structures and Turn them into
Net Zero Energy Buildings (Ministry of the Environment)
Support for the Intensive Introduction of Electric Vehicles for Business-Use Cars
(Ministry of Land, Infrastructure, Transport and Tourism)
Promoting the Sharing of Electric Vehicles and Energy Saving (Ministry of theEnvironment)
New Support System concerning the Stocking of Energy Saving Housings in the Timeof Inflation (working title) (Ministry of Land, Infrastructure, Transport and Tourism)
Review of the Regulations Governing Fast Chargers and Lithium Ion Batteries toward
the Popularization of Electric Vehicles (Cabinet Office)Intensification of Diplomatic Efforts Aimed at Promoting Economic Security
Contributing to Energy Security, etc. (Ministry of Foreign Affairs), etc.

(2) Establishing a secure and resilient food supply system
Ensuring stable food supply is one of any nation’s most fundamental duties. The
recent situation in Ukraine has been a reminder about the importance of stable foodsupply besides that of energy sources. Japan is highly reliant on overseas countries
for crops such as wheat and soybeans, fodder, and fertilizer materials. Therefore,
hikes in the prices of raw materials indispensable for agricultural and food production,or the disruption of the supply thereof, can pose a threat to stable food supply for
citizens, significantly affecting their livelihoods and the country’s economy.
By promoting the domestic production of fertilizers, fodder, and crops, theGovernment makes Japan’s food supply system more secure and resilient against afood crisis.
The Government seeks to reduce chemical fertilizer use and stockpile fertilizer
materials. With a view to increasing the use of farmyard compost and sewage sludge
as fertilizers, the Government sets up a new system to urge alignment among
livestock farmers, fertilizer makers, and crop farmers, as well as support them toupgrade their facilities and make use of soil tests. The Government also sets up a new
system to support alignment between rice growers and livestock farmers for the
purposes of increasing Japanese-made fodder and promoting the use thereof.
In order to increase the domestic production of soybeans and wheat and secure thestable supply thereof, the Government supports the introduction or improvement ofneeded facilities, strongly encourages rice growers to turn their paddies into fields,
and supports facility investment aimed at popularizing rice flour. Moreover, theGovernment takes measures to urge food products manufacturers to use
domestically-produced raw materials.
11

The Government also urges seafood manufacturers to use domestically-produced raw
materials as well as promotes the domestic production of fish flour for aquaculture.
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

▪

Measure for increasing the use of domestic fertilizer resources (Ministry of Agriculture,
Forestry and Fisheries)
Measure for stockpiling fertilizer materials (Ministry of Agriculture, Forestry and
Fisheries)
Emergency measure project for the Green Food System Strategy (Ministry of Agriculture,
Forestry and Fisheries)
Promoting the use of sewage sludge as fertilizer (Ministry of Land, Infrastructure,
Transport and Tourism)
Technology development and verification aimed at promoting the distribution of pellet
compost and the use of sewage sludge as fertilizer resources (Ministry of Agriculture,
Forestry and Fisheries; Ministry of Land, Infrastructure, Transport and Tourism)
Comprehensive emergency measures for improving the fodder self-efficiency rate
(Ministry of Agriculture, Forestry and Fisheries)
Project to equalize the supply of specified aquatic products (Measures for transition toalternative raw materials) (Ministry of Agriculture, Forestry and Fisheries)
Project to take comprehensive emergency measures aimed at strengthening theaquaculture sector (Ministry of Agriculture, Forestry and Fisheries)
Project to power up infrastructure for domestic production (Ministry of Agriculture,
Forestry and Fisheries)
Comprehensive measures for enhancing the supply of Japanese-produced wheat andsoybeans (Ministry of Agriculture, Forestry and Fisheries)
Project to turn rice paddies into fields (Ministry of Agriculture, Forestry and Fisheries)
Measures for supporting the wider use of rice flour (Ministry of Agriculture, Forestry
and Fisheries)
Project to take measures for stabilizing the procurement of raw materials for foodproducts (Ministry of Agriculture, Forestry and Fisheries)
Measures for supporting the production of special forest products (Ministry ofAgriculture, Forestry and Fisheries), etc.

3. Promoting a continuous increase in wages and supporting
SMEs
In order to achieve the goal of creating a virtuous cycle of continuous growth anddistribution through measures aimed at realizing the “New Form of Capitalism” and tothereby form a thick middle class, it is essential that wages keep increasing on a short,medium, and long-term basis.
In the 2023 Spring Labor Offensive, amid cost-push inflation, labor unions will target awage increase making up for price hikes, and the Government puts its full effort to backup the negotiation. The Government also provides support for SMEs to improve theirproductivity and endorses them to pass on costs to prices.
In order to achieve a medium-to-long-term structural wage increase based on Chapter III“Accelerating the New Form of Capitalism” herein, the Government promotes bold12

investment in growing areas and thereby seeks to give rise to highly-productive and highpaying industries and companies, while simultaneously taking measures to encouragesmooth labor reallocation to such areas and intensify investment in people.

(1) Promoting an increase in wages
In order to strongly promote a continuous increase in wages that keeps pace withprice hikes, the Government significantly enhances its support for pay rise, all thewhile taking other measures aimed at supporting SMEs to rebuild their businesses
and improve productivity, apart from promoting the tax credits for salary growth
whose scope was expanded in this fiscal year. The Government also gives priority,
when conducting its procurement, to companies that by then will have raised theiremployee wages.
In tandem with all the efforts, the Government seeks to fundamentally improve
working conditions for non-regular workers. To be more specific, apart fromreinforcing its call for the observance of the principle of equal pay for equal work,
the Government seeks to raise the national weighted average of minimum wages tostand at 1,000 yen or higher as early as possible, all the while considering economic
performance, price behavior, and regional gaps.
In light of the current hikes in the prices of construction materials, the Government
encourages builders involved in public work projects to appropriately pass costs toprices. While keeping the volume of projects suitable for steady improvement insocial and capital infrastructure, the Government ensures proper growth of earnings
for those builders and thereby seeks to bring an increase in wages paid to construction
workers.
The Government hopes that all these measures will lead employers to discuss pay
rise making up for price hikes with their labor unions in the Spring Labor Offensive(wage negotiations between employers and labor unions) in 2023.
▪
▪
▪
▪
▪
▪
▪
▪

Project to encourage SMEs to rebuild their businesses (Ministry of Economy, Trade andIndustry)
Project to promote SMEs to upgrade their productivity (Ministry of Economy, Trade andIndustry)
Expansion of the subsidy for business operation improvement (Subsidy for companies toraise their minimum wages) (Ministry of Health, Labour and Welfare)
Expansion of the subsidy for promoting and supporting Work Style Reform (Increase in
the preferential scores given to companies that have raised wages) (Ministry of Health,Labour and Welfare)
Request and support via the Labour Standards Inspection Office for companies to raise
wages (Ministry of Health, Labour and Welfare)
Publicity concerning support measures aimed at increasing wages and the disseminationof successful examples (Ministry of Health, Labour and Welfare)
Efforts to more thoroughly implement the principle of equal pay for equal work (Ministryof Health, Labour and Welfare)
Implementation of public work projects based on the current hikes in the prices of
construction materials (Ministry of Land, Infrastructure, Transport and Tourism), etc.

13(2) Setting the stage for SMEs to increase wages(i) Making it easier for SMEs to pass on costs to prices
In tandem with the above-mentioned measures for promoting an increase in wages,
the Government sets the stage for SMEs to secure a capital source needed to raise
wages by enabling SMEs to duly pass on increases in the costs for labor, rawmaterials, energy, etc., to prices.
More precisely, the Government enhances the functions of the Japan Fair Trade
Commission among other bodies, and discloses, in accordance with the AntiMonopoly Act, the names of business operators who refuse to accept price increases
sought by suppliers. Moreover, the Government enforces the Anti-Monopoly Act andthe Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors
more strictly than before and issues an order, warning, or recommendation in
response to a case that runs afoul of those Acts. The Government also expands thescope of guidance and advice that is to be given to large procuring enterprises basedon the “Months for Promoting Price Negotiations” initiative as well as expands thescope of disclosure with a view to heightening the effectiveness of such guidance andadvice. The Government also seeks to enhance the negotiation skills of SMEs, inaddition to promoting the “Partnership Declaration” initiative.
▪
▪
▪
▪

Promotion of proper practice of bargaining with SMEs through enhanced law
enforcement (Investment in a system used in screening of breaches with the AntiMonopoly Act) (Japan Fair Trade Commission)
Efforts to more thoroughly implement the principle of equal pay for equal work (Ministryof Health, Labour and Welfare) [Afore-cited]
Project on transaction measures for SMEs (Survey, etc., on SME price pass-through)(Ministry Economy, Trade and Industry)
Publicity on proper fare collection concerning truck transportation, coastal shipping, andwarehousing operators and aimed at reflecting price increases in fuels, etc., and thepromotion of practice based on laws and regulations, etc. (Ministry of Land,
Infrastructure, Transport and Tourism)(ii) Increasing added value created by SMEs
In order to increase added-value which serves as a capital source for SMEs to raise
wages, the Government provides seamless, flexible, and continuous strong support
for SMEs over the several fiscal years to rebuild their businesses, improve
productivity, and smoothly pass down the business to the next generation, all thewhile helping them adapt to new business circumstances, such as digital and green
elements as well as COVID-19 and inflation.
The Government also takes measures aimed at helping SMEs introduce the qualified
invoice-based method.
The Government provides financing support for businesses that have been in adifficult time due to the pandemic or inflation. Moreover, the Government supports
SMEs with a debt that has increased due to the pandemic to improve their earning
14

power or provides them with debt relief, etc., and thereby helps them revitalize theirbusiness or challenge a new thing and eventually overcome the excessive debt andpave a way for the future. The Government establishes a new credit-guarantee systemthat meets demands for refinance as well as for new capital sources, apart fromfacilitating the process of financing by permitting transition to capital funds(subordinated loans). The Government collects and disseminates knowledge andknowhow on business revitalization and provides focused support for local
transportation services, etc. By the end of 2022, the Government develops measures
aimed at establishing new practices for lending money that do not rely on personal
guarantee.
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

Project to encourage SMEs to rebuild their businesses (Ministry of Economy, Trade andIndustry) [Afore-cited]
Project to promote SMEs to upgrade their productivity (Ministry of Economy, Trade andIndustry) [Afore-cited]
Expansion of the subsidy for business operation improvement (Subsidy for companies toraise their minimum wages) (Ministry of Health, Labour and Welfare) [Afore-cited]
The Councils for Revitalizing SMEs, and project to comprehensively support businesssuccession (Ministry of Economy, Trade and Industry)
Project to provide flexible support according to changes in the business environment(Ministry of Economy, Trade and Industry)
Financing support by Japan Finance Corporation and others (Ministry of Finance,
Ministry of Economy, Trade and Industry, Cabinet Office) [Afore-cited]
New credit-guarantee system for reducing the burden of debt repayments to the zerozero loans provided by private financial institutions (Ministry of Economy, Trade andIndustry)
Project to provide support by specified support agencies for the development ofmanagement improvement plans (Ministry of Economy, Trade and Industry)
Enhanced smooth supply of funds for local builders in consideration of hikes in the pricesof construction materials, etc. (Ministry of Land, Infrastructure, Transport and Tourism)
Project to advance the level of support for businesses having a transaction with local
financial institutions (Collection and dissemination of knowledge and knowhow by
Regional Economy Vitalization Corporation of Japan (REVIC), establishment of ataskforce specializing in support for local transportation services, and as-needed-based
reinforcement of functions such as the expansion of a government-backed borrowing
facility) (Financial Services Agency), etc.

15II. Recovery and Reinforcement of Local “Profitability”
Utilizing the Depreciation of the Yen
1. Restoring demand lost due to the pandemic and revitalizing
local economies
The COVID-19 pandemic has had a hard impact on the tourism industry, among otherindustries, that used to be the cornerstone of local economies. Following the recent easingof the COVID-19 border control measures, the Government drives forward measures
aimed at restoring the status of Japan as a tourism-oriented country and bringing its
benefits to citizens. In the pursuit of these aims, the Government makes the best advantageof the recent depreciation of the yen. The Government also commits itself to revitalizing
local economies and developing a sustainable economy and society. To that end, theGovernment provides support for the eating-out industry, promotes culture, arts, andsports, improves infrastructure, energizes the agriculture, forestry, and fishery sector, anddevelops communities.

(1) Restoring the status of Japan as a tourism-oriented country
The Government aims to quickly achieve an annual amount of inbound tourist
consumption exceeding five trillion yen and, to that end, promotes an intensive policy
package. The Government also develops a new “Basic Plan for the Promotion ofJapan as a Tourism-Oriented Country” by the end of fiscal 2022, with a focus onreviving the country’s tourism industry and making it sustainable by the year 2025,
when EXPO is to take place in Osaka, Kansai.
Apart from providing systematic and continuous support for initiatives aimed atreviving and giving extra value to the country’s sightseeing spots and tourism
industry, the Government seeks to make such areas and industry more profitable by,among other measures, increasing tourists who stay in Japan for a long period of time,
who repeatedly come to the country, and who spend one million yen or more per visit
to the country. The Government supports the development of sustainable tourism
destinations and the attraction enhancement of tourism resources that are conductedin such a way to strike a balance with the conservation of the local nature and culture.
The Government also launches strategic promotional campaigns aimed at luring
tourists to Japan, besides supporting the creation and global dissemination of tourism
content showcasing special local experiences. Moreover, the Government promotes
the use of the tax exemption program among foreign tourists. Meanwhile, in
preparation for full-scale recovery of inbound tourism, the Government improves thecountry’s tourism infrastructure so it will be properly put in place for foreign tourists.
In order to revitalize domestic tourism, the Government steadily continues toimplement the National Travel Assistance Program and other measures aimed atraising demand for domestic tourism from people living in Japan.
▪
▪

Joint local endeavor for revitalizing and giving additional value to sightseeing spots andthe tourism industry (Ministry of Land, Infrastructure, Transport and Tourism)
Intensive efforts, etc., aimed at restoring inbound demand on a full scale (Ministry of

16

▪
▪
▪
▪
▪

Land, Infrastructure, Transport and Tourism)
Project to lure inbound tourists to rural regions and to support the creation of tourism
content aimed at increasing consumption (Ministry of Land, Infrastructure, Transport andTourism)
Project to promote the overseas deployment of the Japanese content industry andstrengthen its infrastructure (Ministry of Economy, Trade and Industry)
Improvement of national park facilities, etc., to make the parks more attractive
destinations (Ministry of the Environment)
Emergency measure project for getting tourism spots ready to receive foreign tourists(Ministry of Land, Infrastructure, Transport and Tourism)
Realization of proper immigration and residence control (Improvement of theimmigration check system, etc., in preparation for the recovery of the inbound demand),and secure implementation of the quarantine system (Ministry of Justice; and Ministryof Health, Labour and Welfare), etc.

(2) Revitalizing local economies
Likewise for the tourism industry, the Government takes measures to restore demandin other industries that have also been significantly affected by the pandemic. For theeating-out industry and environmental health-related businesses, the Government
supports their forward-looking initiatives such as new services. Apart from seeking
to raise demand by providing support for entertainment and other recreation events,
including those held by shopping district associations, the Government takes
measures for supporting local businesses, such as human resource match-making via
local financial institutions, etc.
In order to realize the development of Japan as a culture-and-arts-oriented country,
the Government supports cultural and art activities and promotes the creation ofopportunities for children to appreciate cultural and artistic works and experiencesuch activities. Apart from supporting wider and deeper dissemination of Japaneseculture, etc., the Government makes strategic use of the country’s outstanding
cultural treasure, traditional events, cultural facilities, and other cultural resources,
with a view to giving rise to a virtuous cycle of regional culture and economic
revitalization. Also, in order to realize the development of Japan as a sports-oriented
country, the Government promotes sports through measures such as improving sports
infrastructure and supporting smooth implementation of international sports
competitions.
The Government also seeks to maintain and enhance production infrastructure forthe agricultural, farming, dairy, and fishery industries. Moreover, the Government
seeks to secure human resources who will work in those industries in the future, takes
measures to prevent bird and animal damage, invigorates hilly and mountainous areas,
supports startups providing agricultural support services, develops and verifies smart
technologies, promotes the greening of society, and strengthens the country’s
capacity to supply wood materials while seeking a shift to Japanese-produced
materials.
The Government supports initiatives aimed at rebuilding local public transportation
networks into ones with higher sustainability and convenience. The Government also17strategically and systematically implements infrastructure projects aimed at
improving daily life functions, besides promoting the development of disadvantaged
areas, including the renewal of communities into compact, roomy, and vibrant ones
as well as urban regeneration and redevelopment.
With an increase in national tax revenue, the Government increases the amount oflocal tax grants for fiscal 2022 and thereby facilitates local governments toimplement projects pertaining to these Comprehensive Economic Measures and also
take their own measures for revitalizing their local economies.
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

Emergency support measures for business continuation in the eating-out industry(Ministry of Agriculture, Forestry and Fisheries)
Business improvement support, expert consultation, and encouragement of digitalizationfor environmental health-related business proprietors (Ministry of Health, Labour andWelfare)Project to restore, via an umbrella organization (Art Caravan 2), demand for culture andarts activities and revitalize local economies (Ministry of Education, Culture, Sports,
Science and Technology)
Comprehensive package, including measures for providing children with firsthandopportunities to view cultural and artistic works (Ministry of Education, Culture, Sports,
Science and Technology)
Support for the conservation of cultural treasure and the use thereof, and reinforcementof the functions of national cultural facilities (Ministry of Education, Culture, Sports,
Science and Technology)
Project to promote traditional events, etc., toward the revitalization of local economies(Ministry of Education, Culture, Sports, Science and Technology)
Project to improve infrastructure for local sports club activities (Ministry of Education,
Culture, Sports, Science and Technology)
Project to prepare for large-scale international sports competitions (Ministry of
Education, Culture, Sports, Science and Technology)
Project to power up infrastructure for domestic production, and cluster farming project(Ministry of Agriculture, Forestry and Fisheries) [Afore-cited]
Production system enhancement for sweetener resource and field crops (Ministry ofAgriculture, Forestry and Fisheries)
Measures for stabilizing fishery income, infrastructure reinforcement for fisherycooperatives, and enhancement of the fishery industry’s competitiveness (Ministry ofAgriculture, Forestry and Fisheries)
Securement of human resources for the agriculture and fishery industries (Ministry ofAgriculture, Forestry and Fisheries)
Subsidy for comprehensive measures aimed at preventing bird and animal damage(Ministry of Agriculture, Forestry and Fisheries)
Measures for hilly and mountainous areas, etc. (Ministry of Agriculture, Forestry and
Fisheries)
Emergency risk money measures for startups in the agriculture, forestry, and fishery foodsector; and emergency incubation measures pertaining to the agriculture support service
project (Ministry of Agriculture, Forestry and Fisheries)
Project to develop, verify, and implement smart agriculture technologies (Ministry ofAgriculture, Forestry and Fisheries)

18

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▪
▪
▪
▪
▪
▪

▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

▪

Emergency measure project for the Green Food System Strategy (Ministry of Agriculture,
Forestry and Fisheries) [Afore-cited]
Measures for making use of domestic forestry resources and increasing the woodindustry’s international competitiveness (Ministry of Agriculture, Forestry and Fisheries)
Project to secure, maintain, and improve local public transportation services (Ministry ofLand, Infrastructure, Transport and Tourism)
Improvement of road networks contributing to higher productivity (Ministry of Land,
Infrastructure, Transport and Tourism)
Improvement of ports and harbors contributing to increasing the competitiveness ofJapanese industries (Ministry of Land, Infrastructure, Transport and Tourism)
Aid for expenditures on surveys for the Public Private Partnership/Private FinanceInitiative project (Promotion of PPP/PFI business model formulation) (Cabinet Office)Project to advance the level of support for business operators having transactions withlocal financial institutions (Support for human resource match-making via REVICareer,a large company’s platform for human resources) (Financial Services Agency) [Aforecited]
Pioneering human resource match-making project (Cabinet Office)Overseas dissemination of TV content and enhancement of local information sharing anddissemination (Ministry of Internal Affairs and Communications)
Project to teach Japanese for overseas human resources (Ministry of Foreign Affairs)
Subsidy for the “Vision for a Digital Garden City Nation” (Cabinet Office)Development of compact, roomy, and vibrant communities, green development ofcommunities, improvement of urban parks, and creation of waterfront spaces (Ministryof Land, Infrastructure, Transport and Tourism)
Creation of innovation hubs in provincial cities and enhancement of large cities’ global
competitiveness (Ministry of Land, Infrastructure, Transport and Tourism)
Invigoration of the economies in disadvantaged areas (remote islands, peninsulas,
Amami, Ogasawara, and heavy snowfall areas) (Ministry of Land, Infrastructure,
Transport and Tourism)
Development of human resources with IT expertise toward the realization of “Okinawa
with Strong Economy” (Cabinet Office)Measure for luring tourists to Upopoy, etc. (Ministry of Land, Infrastructure, Transport
and Tourism)
Subsidy for promoting the conservation of specified populated remote territorial island
areas and local communities (Cabinet Office) [Afore-cited]

Increase in local tax grants (Ministry of Internal Affairs and Communications),
etc.

2. Taking advantage of a weak yen to make the economic
structure stronger
With geopolitical changes making supply chains unstable, overseas countries more andmore expect Japan, for its technological edge over them, to act as a larger supplier of theirimportant and yet difficult-to-produce-by-themselves articles. Meanwhile, Japan’s supply
chains need to be realigned urgently; the pandemic has crippled them and exposed theirvulnerability, causing disruptions in the supply of parts, etc. The Government, therefore,
19enhances Japan’s supply capacity, including export capacity, for such articles and parts,
etc. To be more specific, with the depreciation of the yen significantly improving the costfeature of Japan as an industrial location, the Government encourages more and more
Japanese companies to return their production sites back to Japan, among other inwardand “offensive investment,” while at the same time seeking to increase foreign direct
investment in Japan. Moreover, the Government seeks to increase export from SMEs
through the maximum use of digital technologies and knowhow on market exploration.
The Government also takes measures for increasing the export of agricultural, forestry,
and fishery products with competitive edge in global markets and seeks to achieve thetarget of exporting two trillion yen of such products earlier than 2025, the year set for thetarget to be achieved. All these measures will help make Japan’s economic structure more
resilient.

(1) Enhancing the capacity to produce articles in demand from overseas
and increasing the volume of export
As companies around the world are forced to realign their supply chains to adapt tochanges in international affairs, their expectations in Japanese companies as their
supplier are growing.
Apart from promoting the Japan-US joint development of next-generation
semiconductor production technology, the Government seeks, in alignment withother countries, to expand investment in the supply-side of the economy and establish
a secure supply system in crucial high tech areas, such as cutting-edge
semiconductors, conventional semiconductors and materials related thereto,
semiconductor production equipment, batteries and materials related thereto, andcloud computing.
The Government also seeks to meet the demand from overseas for important articles,
such as aircraft-related materials, permanent magnet, machine tools, and industrial
robots, by enhancing the domestic capacity to produce them for stable supply.
▪
▪
▪

Support for strengthening Japan’s supply chains by taking advantage of a weak yen(Ministry of Economy, Trade and Industry)
Securing domestic production hubs for advanced semiconductors (Ministry of Economy,
Trade and Industry)R&D project to strengthen infrastructure for post-5G information and communication
systems (Ministry of Economy, Trade and Industry), etc.

(2) Drawing back corporate inward investment and increasing foreign
direct investment
The Government provides support for the installation of production facilities in Japanfor important products, parts, and materials, etc., that have been produced by alimited number of companies at limited locations and hence vulnerable to the risk of
disruption in the supply chain. The Government also encourages Japanese companies
in other areas of Japan’s strength to make bold investment aimed at outperforming
their competitors the world over.
20

Besides encouraging Japanese companies to return their production sites back toJapan, the Government seeks to increase foreign direct investment in Japan based on
the understanding that the country’s growth requires being connected with the rest of
the world and exchanging people, things, money, and digital technology with it
beyond restrictions.
In coincidence with the recent drastic easing of border control measures, theGovernment launches a promotional campaign for the opening of Japan and invites
foreign companies’ executives to Japan for potential business partnerships withJapanese companies. The Government lures foreign investment in growing areas,such as GX, DX, healthcare, and food tech. Apart from working on attracting foreign
venture capital investment to develop startups through the infusion of overseas
vitality, the Government accelerates its consideration on the regulatory reform,
including the relaxation of the status of residence requirements for foreign
entrepreneurs. The Government enhances the effort to lure foreign students,
promotes their internships at Japanese companies, and works on institutional reform
aimed at upgrading the effort to attract highly-skilled human resources from overseas.
As part of efforts to improve business conditions for foreigners, the Government
seeks to realize the vision of becoming an international financial center. To be more
specific, the Government accelerates the Corporate Governance Reform and supports
foreigners to found a corporate body in Japan, with such support including thefacilitation of the process to open a bank account in the country. Moreover, theGovernment works on regulatory review and revision in light of the country’s Digital
Principles and also works on the installation or improvement of port and harbor
facilities.
The Government uses the G7 Hiroshima Summit as an opportunity to enhance theeffort to disseminate Japan’s charms across the world and to deepen its understanding
about Japan and raise the country’s presence in the world community.
▪
▪
▪
▪
▪
▪

▪

Measures for promoting domestic investment aimed at securing supply chains (Ministryof Economy, Trade and Industry)Support for strengthening Japan’s supply chains by taking advantage of a weak yen(Ministry of Economy, Trade and Industry) [Afore-cited]
Project to construct biopharmaceutical production sites, etc., toward the enhancement ofJapan’s vaccine production system (Ministry of Economy, Trade and Industry)
Project to strengthen Japan’s supply chains for important minerals (Ministry of Economy,
Trade and Industry)
Project to promote overseas market exploration and build supply chains with alliancecountries (Ministry of Economy, Trade and Industry)
Acceleration of entrepreneur startups (Expansion of the initiative for spotting anddeveloping IT talent; launch of an overseas hub for developing entrepreneurs;enhancement of the function to invest in venture capital for the purpose of attracting
investment from inside and outside the country; enhancement of the support for R&Dled startups and drug discovery ventures; and support for the commercialization oftechnology seeds at universities, etc.) (Ministry of Economy, Trade and Industry)
The “Global Startup Acceleration Program” (Promotion of startup global forays)(Cabinet Office)

21

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▪
▪
▪
▪

Project to teach Japanese for overseas human resources (Ministry of Foreign Affairs)[Afore-cited]
Promotion of investment in people through JICA Development Studies Program, etc.
(Ministry of Foreign Affairs)
Enhancement of Japan’s functions as an international financial center; improvement of
support conditions aimed at attracting human resources; and enhancement ofpromotional activities and information services (Financial Services Agency)
Promotion of the Corporate Governance Reform (a research and study project) (Financial
Services Agency)
Strategic international publicity concerning the government’s “New Form of Capitalism”
and other major measures at the G7 Hiroshima Summit (Cabinet Office), etc.

(3) Increasing the volume of export from SMEs
The depreciation of the yen can serve as a catalyst for SMEs to start exporting andexplore overseas markets. Commercial and industrial associations or chambers ofcommerce and industry around Japan unearth SMEs interested in exporting, while
specialists provide them with close-following support. At the same time, theGovernment promotes the “Support Program for 10,000 New Small- and MediumSized Exporters,” providing support for SMEs to develop export products, carry out
branding and promotional activities, enhance their partnerships with export houses,
etc., and explore sales channels through e-commerce sites or other means. The
Government also seeks to strengthen the infrastructure of Japan’s content industry.
To be more specific, the Government provides support for live entertainment using
new technologies such as Web 3.0 12 and the metaverse 13 and offers incentives
aimed at attracting filmmakers to Japan as their filming locations. Moreover, theGovernment provides support for the export to and exploration of overseas markets
on the part of startups engaged in the business of providing infrastructure systems orother social solutions. The Government also supports such startups to recruit anddevelop human resources as well as participate in trustful supply chains built acrossalliance countries.
11F

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▪

12F

Project to promote overseas market exploration and build supply chains with alliancecountries (Ministry of Economy, Trade and Industry) [Afore-cited]
Project to promote SMEs to upgrade their productivity (Ministry of Economy, Trade andIndustry) [Afore-cited]
Project to promote the overseas deployment of the Japanese content industry andstrengthen its infrastructure (Ministry of Economy, Trade and Industry) [Afore-cited]
Project to promote the creation of inbound demand for specified daily-life services andstrengthen the infrastructure (Ministry of Economy, Trade and Industry), etc.

12 It is a concept that has been drawing much attention as the next-generation internet. In a Web 3.0 world, where

everything is decentralized, individuals interact with each other outside the control of a huge platformer. Web 3.0
is what follows Web 2.0, which is represented by the smartphone and social media and came after Web 1.0, whichis represented by Email and websites.
13 It is a 3D virtual reality constructed in a computer or computer network, or services provided in the virtual spaces.

22(4) Increasing the export of agricultural, forestry, and fishery products
The Government aims to achieve the target of export of two trillion yen of
agricultural, forestry, fishery, and food products earlier than 2025, the year set for thetarget to be achieved. To that end, the Government strongly promotes efforts for:providing producers with close-following expert support; establishing producers
specializing in export products through measures such as support for advanced foodsanitation management systems for beef and other export food; enhancing thecountry’s export capability with help from agricultural, forestry, fishery, and foodexport promotion organizations; establishing export support systems in export
destinations, with such systems including networking with local retailers, eating
establishments, and distributors; supporting agriculture, forestry, fishery, and foodrelated startups; and preventing Japanese varieties from flowing out to overseas.
▪
▪
▪
▪
▪
▪
▪

Support for increasing the market-in export business sector; establishing an export
support system in export target countries; and developing producers who meet global
needs (Ministry of Agriculture, Forestry and Fisheries)
Enhancement of the research function at the National Research and Development
Agencies engaged in the research of agricultural testing (Enhancement of the protectionof new varieties outside Japan, etc.) (Ministry of Agriculture, Forestry and Fisheries)
Emergency measures for improving HACCP-rated facilities, etc., used by export foodmakers (Ministry of Agriculture, Forestry and Fisheries)
Measures for increasing export, such as those aimed at upgrading the country’s meat
distribution structure and promoting consortia (Ministry of Agriculture, Forestry and
Fisheries)
Emergency risk money measures for startups in the agriculture, forestry, fishery, and foodsector (the Ministry of Agriculture, Forestry and Fisheries) [Afore-cited]
Project on emergency infrastructure improvement measures for promoting the export offishery products (Ministry of Agriculture, Forestry and Fisheries)
Project to support the global deployment of Japanese-produced alcoholic beverages(Ministry of Finance), etc.

III. Acceleration of a “New Form of Capitalism
1. Drastic reinforcement of “investment in human capital”
and labor reallocation to growing sectors: Integrated reform
for structural wage increases“People” are definitely the driving force behind the realization of the "New Form of
Capitalism" that solves social problems and serves as the engine of growth through digital,
green, and other discontinuous innovations. The government will drastically strengthen"investment in human capital," as the first pillar of the "New Form of Capitalism," andsquarely and decisively confront one of our country's structural problems that has
prevented substantial wage increase for many years.
By promoting an integrated reform of three challenges, which are wage increase,23

facilitating labor reallocation, and investment in human capital, and by operating avirtuous cycle in which wage increases attract highly skilled workers, improve corporate
productivity, and generate further wage increases, the government aims to realize"structural wage increases."(1) Strengthening investment in human capital and facilitating labor
reallocation
With a view to simultaneously acquiring new skills in the digital sector, etc., andfacilitating labor reallocation to growing sectors, the government will expand the
package of measures for "investment in human capital," which has been implemented
at a scale of 400 billion yen over 3 years, to 1 trillion yen over 5 years.
Specifically, with an emphasis on "facilitating labor reallocation between companies
and industries," the government will expand support for companies that shift nonregular employees to regular employees after they take training and for companies
that hire new workers at higher wages to realize job changes and labor reallocationthat entails higher wages. In addition, as a way to help job seekers advance theircareers, it will establish a new system to provide consistent support for job reskillingand job changes through consultation with private experts. Furthermore, it will work
to match human resources to local companies, with the support of regional financial
institutions, etc., and provide support to companies that allow their employees towork a second job.
At the same time, the government will enhance support for worker reskilling, suchas increasing the subsidy rate for companies that help workers engage in reskillingvoluntarily and develop their careers.
In addition, the government will strengthen the development of human resources for
digital promotion, aiming to develop 2.3 million people by the end of fiscal 2026,
and expand support for young researchers and international students.
Furthermore, by June of next year, it will finalize guidelines for facilitating the
migration of labor between companies and industries, including the development of
measures to support reskilling and shift from seniority-based wages to job-based
wages in a manner that suits Japan, and will develop policies necessary to implement
the guidelines. In addition to the promotion of continuous wage increases, efforts will
be integrally and continuously made to promote wage increases through thedevelopment and activation of human resources, provide support for facilitating the
migration of labor accompanied by wage increases, and restructure the safety net of
employment, so that the labor market can respond flexibly to changes and support
diverse choices of individuals.
In conjunction with these efforts, with regard to employment adjustment subsidies,
the government will continue to reduce special measures in a phased manner from
December 2022 in order to realize reskilling and facilitation of labor reallocation thatlead to "structural wage increases," and shift the measures to the regular system while
giving consideration to companies with difficult business conditions. 14
13F

14 Specifically, employment adjustment subsidies will be reduced in three stages: 1) the amount will be continuously

reduced from October 2022; 2) payment requirements will be eased from December 2022 to March 2023; and 3)

24

In addition, in order to take all possible measures to provide the employment
adjustment subsidies for the time being and to strengthen support for facilitating labor
reallocation and investment in human capital, as well as to ensure a stable financialbase for employment insurance in the event of a deterioration in the employment
situation, a stable financial base is essential. To realize it, the government will work
to secure financial resources 15.
14 F

In order to develop human resources who can play an active role from the school
education stage and be evaluated in society, the government will promote therestructuring of faculties of universities and technical colleges in growing sectors 16,
as well as promote the sophistication of teacher training, regional collaboration ofschool club activities, and shift to community club activities.
15 F

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▪

▪
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Promoting shift from non-regular employees to regular employees and improvement intheir treatment through the career advancement subsidies (Ministry of Health, Labourand Welfare)
Review of the subsidies for supporting labor reallocation (Early employment support
course) and the mid-career employment support subsidies (Mid-career extension course)(Ministry of Health, Labour and Welfare)
Expansion of the employment development subsidies for specified job seekers (Courseof human resource securing and development in growing sectors) (Ministry of Health,Labour and Welfare)
Facilitating labor reallocation between companies and industries to give workers theopportunity to change jobs (Ministry of Economy, Trade and Industry)
Pioneering HR match-making project (Cabinet Office) [Afore-cited]
Project to advance the level of support for business operators having transactions withlocal financial institutions (Support for human resource match-making via REVICareer,a large company’s platform for human resources) (Financial Services Agency) [Aforecited]
Expansion of the “investment in human capital promotion course” of the human resource
development support subsidies (increase in subsidy rate) and establishment of the“business development and reskilling support course” (tentative name) (Ministry of
Health, Labour and Welfare)
Establishment of the industrial employment stabilization subsidies (Upskilling support
course) (tentative name) (Ministry of Health, Labour and Welfare)Support for individual workers to learn and relearn in response to changes in the economy
and society (Expansion of education and training benefits) (Ministry of Health, Labourand Welfare)
Project to promote recurrent education to promote ready-to-work personnel in growing
sectors (Ministry of Education, Culture, Sports, Science and Technology)transitional measures will be taken, such as raising the maximum daily amount and subsidy rate from those under
the regular system, until January 2023 for companies with particularly severe business conditions. The emergency
employment stabilization subsidies, which have been prepared as an exceptional measure for workers who are notcovered by employment insurance, will continue until the end of the fiscal year, while being reduced in line withthe employment adjustment subsidies.
15 A voluntary transfer is made from the general account to the labor insurance special account employment accountin accordance with the Act on Temporary Special Provisions of Employment Insurance.
16 It will intensively accept restructuring plans for digital green and other growth fields until the end of fiscal 2032,
and promote the prompt restructuring of universities and technical colleges.

25

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Project to promote the introduction of a construction career development system toimprove the skills and treatment of construction technicians (Digital Agency)
Development of digital promotion personnel by focusing on the digital sector in public
vocational training (Ministry of Health, Labour and Welfare)Strengthening support for young researchers through the Grant-in-Aid for JSPS Fellowsof the scientific research expenses subsidies (Ministry of Education, Culture, Sports,
Science and Technology)
Expenses for Japanese students who continuously study abroad under the study abroad
support program (Ministry of Education, Culture, Sports, Science and Technology)
Promotion of investment in human capital through JICA Development Studies Program,
etc. (Ministry of Foreign Affairs) [Afore-cited]
Gradual reduction of special measures for employment adjustment subsidies (Ministryof Health, Labour and Welfare)Stabilization of employment insurance finances (Transfer from general account)(Ministry of Health, Labour and Welfare)
Creation of continuous support measures through a fund for strengthening the functionsof universities and technical colleges leading growing sectors (Ministry of Education,
Culture, Sports, Science and Technology)
Support for the sophistication of teacher training (Ministry of Education, Culture, Sports,
Science and Technology)
Development of a regional sports club activity system [Afore-cited], Integrated
development of environment for regional cooperation and transition to community
cultural club activities (Ministry of Education, Culture, Sports, Science and Technology),etc.

(2) Promotion of diverse work styles and corporate governance reforms
related to human capital
In order to enhance the foundation that supports the strengthening of investment in
human capital and the facilitation of labor reallocation, the government will work on
Work Style Reform that enhances worker engagement 17 and productivity, anddevelop an environment where people can choose diverse and flexible work styles.
With regard to nursing care, etc., efforts will be made to improve the treatment of
employees on site through visualization, while increasing the efficiency of work andreducing workload. In addition, efforts will be fully made to promote the active
participation of women, including in the digital sector, and to support theemployment and social participation of the employment ice age generation.
16 F

At the same time, in order to promote corporate governance reform and to share acommon understanding with shareholders that investment in human capital is thefoundation of sustainable value creation for the company, efforts will be made toenhance disclosure of non-financial information.
▪

Expansion of the subsidy for promoting and supporting Work Style Reform (Increase in
the preferential scores given to companies that have raised wages) (Ministry of Health,17 A concept that indicates a worker's willingness and attitude to contribute voluntarily to an organization or workwhen the achievement of organizational goals coincides with the direction of the worker’s own growth, and theworker can find his job rewarding.

26

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▪
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▪

Labour and Welfare) [Afore-cited]
Comprehensive support for industrial health activities (Ministry of Health, Labour andWelfare)Kindergarten ICT environment development (Ministry of Education, Culture, Sports,
Science and Technology)
Support for the promotion of improvement in treatment for long-term care workers, etc.
(Ministry of Health, Labour and Welfare)Development of a support system for welfare services for persons with disabilities(Ministry of Health, Labour and Welfare)
Substantive survey to improve the productivity of the automobile maintenance industry(Ministry of Land, Infrastructure, Transport and Tourism)
Work Style Reform for national government employees (Work environment
improvement) (Cabinet Secretariat)
Grants for promoting active participation of women in the region (Cabinet Office)Support for the advanced and active efforts of the employment ice age generation in theregion (Cabinet Office)Integrated development of the market environment, including enhancing disclosure ofhuman capital and non-financial information and reviewing quarterly disclosures(Financial Services Agency)
Promotion of the Corporate Governance Reform (research and study project) (Financial
Services Agency) [Afore-cited]
Strengthening market functions by ensuring the credibility of audit firms responsible for
auditing the accounts of listed companies and improving the effectiveness of corporate
internal controls (Financial Services Agency)
Promotion of the establishment of international disclosure rules for human capital(Financial Services Agency), etc.

(3) Doubling of asset income
The government will formulate a comprehensive "asset income doubling plan" at theend of this year in order to realize the structural wage increase provided above, as
well as to create a virtuous cycle in which cash and deposits, which account for halfof our country's personal financial assets of 2,000 trillion yen, will also be used forinvestments, and the benefits of sustained corporate value enhancement will be
brought to households.
In order to shift personal financial assets from savings to investments, thegovernment will examine the fundamental expansion and perpetuation of NISA, as
well as the reform of the individual-type Defined Contribution pension plan (iDeCo)to conclude the tax reform for the next fiscal year at the end of this year. In addition,
as a national strategy, it will develop a national promotion plan to develop a system
to promote customer-oriented business operations, create a mechanism to promote
neutral and reliable advisory services to consumers, and develop a system to enhancefinancial education for stable asset building.
▪

Examination of the fundamental expansion and perpetuation of NISA 18 (Financial
17 F

18 To be discussed and concluded in fiscal 2023 tax reform.

27

▪
▪
▪
▪

Services Agency)
Reform of the individual-type Defined Contribution pension plan (iDeCo) 18(Ministry of
Health, Labour and Welfare)Development of environment to ensure customer-oriented business operations (Financial
Services Agency)
Development of a system to promote financial and economic education to promote stableasset building (Financial Services Agency)
Proactively sending information to improve financial literacy (Financial Services
Agency)2. Promoting bold investments in growing sectors(1) Science, technology, and innovation
The growth rate of research and development investment is low in our country
compared to other developed countries. Through new public-private partnerships, inwhich the government sets out a clear national strategy and the private sector shares
future growth expectations, research and development investment will be stimulated
and the social investment impact will be maximized.
In order to support science and technology sectors that are directly linked to ourcountry's national interests, the government will strengthen the Program for theDevelopment of Critical Economic Security Technologies, and through this, provide
support continuously for the development of advanced critical technologies. In
addition, efforts will be made to promote: the development of research bases forquantum and AI technologies and development bases to accelerate social
implementation; the strengthening of international joint research in the quantum, AI
and information, communications, semiconductor, bio, energy, materials, and healthand medical sectors; bio-manufacturing; regenerative medicine, cell therapy andgene therapy; the development of drug discovery infrastructure; international
standardization strategies; space development; and marine development. Efforts willbe also made to promote research and development in nuclear power and fusion.
The government will work to strengthen regional core universities and universities
with strengths in specific research areas, and to strengthen support for thedevelopment of young researchers.
In addition, it will provide support to facilitate preparations for the EXPO 2025
OSAKA, KANSAI, JAPAN.
▪
▪

▪
▪

Strengthening the Program for Developing Critical Economic and Security Technologies(Cabinet Office)Creation of a global base for business development of quantum, AI, and bio-fusion
technologies (Development of bases for quantum, AI, and biotechnology and project topromote the biotechnology manufacturing revolution, etc.) (Ministry of Economy, Tradeand Industry)Support for large-scale clinical trials of vaccines (Ministry of Health, Labour andWelfare)Project to construct biopharmaceutical production sites, etc., toward the enhancement of

28

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▪
▪
▪
▪
▪
▪
▪

▪

▪
▪
▪
▪
▪
▪
▪
▪
▪

Japan’s vaccine production system (Ministry of Economy, Trade and Industry) [Aforecited]
Research and development for building a global quantum cryptographic communication
network (Ministry of Internal Affairs and Communications)
Promoting development of health and medical centers in Okinawa (Cabinet Office)Support for initiatives of startups at the Okinawa Institute of Science and Technology(OIST) (Cabinet Office)Promotion of the National Genome Analysis Implementation Plan 2022 (Ministry of
Health, Labour and Welfare)Development and promotion of practical application of gene therapy (Ministry of Health,Labour and Welfare)Promotion of research and development and practical application of regenerative
medicine, cell therapy, and gene therapy (Ministry of Economy, Trade and Industry;
Ministry of Education, Culture, Sports, Science and Technology)
Support for the formulation and acceleration of strategies for promoting the use ofstandards (Cabinet Office)Promotion of research and development in the space sector (Accelerating thedevelopment of quasi-zenith satellite system, supporting the construction of small
satellite constellations, accelerating the development of core rockets and improving
launch capabilities, promoting the Artemis program, etc.) (Ministry of Education,
Culture, Sports, Science and Technology; Cabinet Office)Promotion of research and development in the marine sector (Accelerating thedevelopment of rare earth mud, construction of Arctic research vessels, development of
deep AUVs, etc.) (Cabinet Office; Ministry of Education, Culture, Sports, Science andTechnology)
Upgrading of research facilities of the Japan Atomic Energy Agency (Ministry of
Education, Culture, Sports, Science and Technology)
Research and development of key technologies for fusion power generation (Ministry of
Education, Culture, Sports, Science and Technology)
Strengthening the functions of earthquake and tsunami observation networks (Ministryof Education, Culture, Sports, Science and Technology)
Development of information-gathering satellites (Cabinet Secretariat)
Funded project to promote the strengthening of regional core research universities andresearch universities with characteristics (Ministry of Education, Culture, Sports,
Science and Technology)
Promotion of global brain circulation (Support for the establishment of international
research networks for young researchers) (Cabinet Office; Ministry of Education,
Culture, Sports, Science and Technology)
Strengthening support for young researchers through the Grant-in-Aid for JSPS Fellowsof the scientific research expenses subsidies (Ministry of Education, Culture, Sports,
Science and Technology) [Afore-cited]
Strengthening support for emergent research (Support for young researchers who aspireto free and challenging research) (Ministry of Education, Culture, Sports, Science andTechnology)
Creation of continuous support measures through a fund for strengthening the functionsof universities and technical colleges leading growing sectors (Ministry of Education,
Culture, Sports, Science and Technology) [Afore-cited]

29

▪
▪
▪
▪
▪
▪

Strengthening science communication that contributes to exploration and STEAM
education (Ministry of Education, Culture, Sports, Science and Technology)
Development of facilities, equipment and educational research infrastructure ofuniversities and National Research and Development Agency (Ministry of Education,
Culture, Sports, Science and Technology)
Support for the continuation of research activities of National Research and Development
Agency, etc. (Ministry of Education, Culture, Sports, Science and Technology)
Development of infrastructure to promote research on ultra-advanced and important
technologies of national and social importance (Ministry of Education, Culture, Sports,
Science and Technology)
Promoting next-generation synchrotron radiation facilities through public-private
regional partnerships (Ministry of Education, Culture, Sports, Science and Technology)
Strengthening initiatives to build momentum for the EXPO 2025 OSAKA, KANSAI,JAPAN (World Exposition Project) (Ministry of Economy, Trade and Industry, Cabinet
Secretariat), etc.

(2) Acceleration of startups
1) Building human resources and networks to create startups
Developing startups is the key to stimulating dynamism and growth in the Japanese
economy and solving social issues. Setting this year as the first year of startups, thegovernment will formulate a five-year plan at the end of this year with a view toincrease in startups tenfold in five years' time.
The government will provide support to personnel and networks that are importantduring the startup phase. Specifically, efforts will be made to expand initiatives tofind and develop outstanding IT personnel, dispatch 1,000 young personnel who want
to start a business to Silicon Valley and the East Coast in the next five years, establish
overseas bases for developing entrepreneurs, examine strengthening ofentrepreneurship education, develop 1 University 1 IPO 19 movement, strengthen
support measures for creating startups in universities, promote the formation ofstartup ecosystem bases, develop legislation for proper transaction for freelancers,
and support the development of incubation facilities.
18F

▪

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▪
▪
▪

Acceleration of startups (Expanding efforts to find and develop outstanding IT personnel,
establishing overseas bases for developing entrepreneurs, supporting universities andother institutions to commercialize technology seeds, etc.) (Ministry of Economy, Tradeand Industry) [Afore-cited]
Creation of university-based startups for international expansion and expansion ofentrepreneurial education for high school students (Ministry of Education, Culture,
Sports, Science and Technology)
Environment improvement for startup education at all technical colleges (Ministry of
Education, Culture, Sports, Science and Technology)
Promotion of the Global Startup Campus Initiative (Cabinet Office)Global Startup Acceleration Program (Promotion of startups’ global foray) (Cabinet
Office) [Afore-cited]

19 Abbreviation for Initial Public Offering.

30

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▪

Support for initiatives of startups at the Okinawa Institute of Science and Technology(OIST) (Cabinet Office) [Afore-cited]
Measures to strengthen the creation of agricultural startups (Ministry of Agriculture,
Forestry and Fisheries), etc.

2) Strengthening of funding for business growth of startups,
promoting diversification of business development and exit
strategies, and promoting open innovation
For deep tech startups, etc., that require time to grow, the government will provide
support to their business growth and research and development by expanding fundsupply, including public capital, while at the same time fostering domestic venture
capital and attracting foreign investors and venture capital.
In addition, it will examine tax measures for startups and review systems such as
expanding support for startups through public procurement and eliminating the needfor personal guarantees, in order to reduce the risk to managers when they receive acredit guarantee at the time of starting a business.
The government will work on further improvement of the environment for existing
companies to do open innovation with startups. At the same time, it will develop a
private reorganization law for business restructuring.
▪
▪

▪
▪
▪

Drastic expansion of SBIR 20 (Cabinet Office; Ministry of Economy, Trade and Industry;
Ministry of Education, Culture, Sports, Science and Technology; Ministry of Land,
Infrastructure, Transport and Tourism)
Acceleration of startups (Strengthening the capacity to invest in venture capital to attract
domestic and foreign investment and strengthening support for R&D-oriented startups
and drug discovery ventures, etc.) (Ministry of Economy, Trade and Industry) [Aforecited]
R&D project to strengthen infrastructure for post-5G information and communication
systems (Ministry of Economy, Trade and Industry) [Afore-cited]
Global Startup Acceleration Program (Promotion of startups’ global foray) (Cabinet
Office) [Afore-cited]
Tax measures to promote individual startup investment to drastically strengthen startup
ecosystem in our country 21 (Ministry of Economy, Trade and Industry)
Stock option taxation 21(Ministry of Economy, Trade and Industry)
Research and development taxation 21(Ministry of Economy, Trade and Industry)
Taxation for promoting open innovation21 (Ministry of Economy, Trade and Industry)
Financial support for startups by the Japan Finance Corporation and the Development
Bank of Japan (Ministry of Finance; Cabinet Office, etc.)
Early realization of a system to raise funds from financial institutions by using the entire
business as collateral (Financial Services Agency)
Consideration for improving the environment for promoting Web 3.0 (Digital Agency),
19 F

20F

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20 Abbreviation for Small Business Innovation Research. It is a system that consistently supports startups from theearly stages of research and development to government procurement and civilian use, aiming to create innovation.

21 To be discussed and concluded in fiscal 2023 tax reform.

31

etc.

(3) GX (Green transformation)1) Investment
promotionthatsimultaneously
decarbonization and industrial growthfacilitate

Efforts will be made to swiftly implement fundamental changes in the economic andsocial structure through decarbonization and to strengthen our international
competitiveness. To do so, by the end of this year, the government will accelerate theconsideration of the roadmap for the next 10 years. All the while considering theimmediate necessity of addressing the hike in energy prices, the government will also
develop measures for decarbonization and other innovative technologies that willcontribute to the growth of the Japanese economy, such as activate domestic
investment, and implement those measures as part of governmental investment basedon the 10-year roadmap and ahead of the launch thereof.
Based on basic research on innovative technologies such as carbon recycling, where
CO2 is used as a raw material to manufacture materials, products, and fuels, thegovernment will promote research and development toward social implementation.
In addition, it will provide support for GX in the automotive and other sectors,
including promotion of the use of clean-energy vehicles, strengthening the domestic
manufacturing base for storage batteries, and strengthening the manufacturing baseand developing technologies for power semiconductors and photoelectric fusion
technologies, which are essential to achieving both a digital society anddecarbonization. The government will provide intensive support over the next three
years for companies that invest in energy conservation for two or more years, andprovide support for renovation that will help improve the insulation of houses. In
addition, it will accelerate expert discussions toward the end of the year on the restartof more than a dozen nuclear power plants and the development and construction of
next-generation innovative reactors.
▪
▪
▪
▪
▪
▪
▪

▪

Green innovation fund project (Ministry of Economy, Trade and Industry)
Promotion of clean energy vehicles (Ministry of Economy, Trade and Industry)Support for building a resilient supply chain for batteries which are essential for a green
society (Ministry of Economy, Trade and Industry)R&D project to strengthen infrastructure for post-5G information and communication
systems (Ministry of Economy, Trade and Industry) [Afore-cited]
Support for building a resilient semiconductor supply chain to achieve GX by improving
power performance (Ministry of Economy, Trade and Industry)Strengthening subsidies to promote the renewal of energy-saving equipment (Ministryof Economy, Trade and Industry) [Afore-cited]
Strengthening basic research and development in academia to create innovative GX
technologies (Green technologies of eXcellence (GteX)) (Ministry of Education, Culture,
Sports, Science and Technology)
Project to promote the introduction of cutting-edge equipment for housing heat insulation
performance, etc. (Ministry of Economy, Trade and Industry; Ministry of theEnvironment) [Afore-cited]322) Steady popularizationcooperation, etc.

oftechnologies

andinternational

The government will provide support to steadily popularize technologies owned bycompanies for decarbonization and the introduction of renewable energy in the region,and promote financial initiatives such as impact investment to expand the sustainablefinance market, while taking measures to stimulate demand. Toward GX in theautomotive sector, the government will provide support for the development ofcharging and hydrogen filling infrastructure, in addition to vehicles and storage
batteries, and for the transformation of businesses of small and medium suppliers. In
addition, it will promote international decarbonization and adaptation to climatechange by using advanced Japanese technologies for initiatives for GX in the Asian
region and other countries through the support of bilateral and internationalorganizations, such as the Asian Zero Emissions Community initiative.
▪
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▪
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▪
▪
▪
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Promotion of clean energy vehicles and infrastructure (Ministry of Economy, Trade andIndustry)
Project to encourage SMEs to rebuild their businesses (Ministry of Economy, Trade andIndustry) [Afore-cited]
Issuance of government-guaranteed bonds (green bonds) by the Japan Housing FinanceAgency (Ministry of Land, Infrastructure, Transport and Tourism)
Promotion of GX in sectors of community development, infrastructure (dams andsewerage), maritime affairs, ports, aviation, railways, and logistics (Ministry of Land,
Infrastructure, Transport and Tourism)
Promotion toward regional decarbonization and the introduction of renewables (Ministryof the Environment) [Afore-cited]
Promotion of GX and climate change adaptation measures in developing countries
through bilateral assistance and assistance of international organizations (Ministry ofForeign Affairs)
Support for climate change measures in developing countries through international
financial institutions (Ministry of Finance)
Support for Japanese companies' overseas expansion in light of the "New Form of
Capitalism" by Japan Bank for International Cooperation (JBIC) (Ministry of Finance)
Review of the regulations governing fast chargers and lithium ion batteries toward the
popularization of electric vehicles (Cabinet Office) [Afore-cited]
Enhancement of information disclosure on corporate sustainability and promotion of thedevelopment of international disclosure rules (Financial Services Agency)
Support for financial and industrial organizations that promote climate change measures(Financial Services Agency)
Support for funds for the Joint Crediting Mechanism (JCM) (Ministry of theEnvironment)
Enhancement of technology for verifying greenhouse gas emissions using greenhousegas observation satellites (Ministry of the Environment)
Emergency measure project for the Green Food System Strategy (Ministry of Agriculture,
Forestry and Fisheries) [Afore-cited], etc.

33

(4) DX (Digital transformation)
Since DX is a source of new added value and a key to solving social issues, thegovernment will strongly promote policies to promote DX investment.
As for semiconductors, which is also called "industrial rice," the government will
support the development of domestic production hubs and promote the joint
development of technology for the manufacturing of next-generation semiconductors
with the United States. In addition, it will promote strategic investments in cuttingedge technologies, such as the drastic enhancement of research and development of
Beyond 5G, which will be the foundation for future society and industry.
The government will promote the acquisition of My Number Card through:accelerating the integration with health insurance cards, development of anenvironment for the abolition of health insurance cards by the fall of 2024,
development of an environment for the integration with driver's licenses, support for
strategic public relations and local governments' efforts, making electronic certificate
fees free for the time being for private businesses, support for the expansion ofopportunities for private businesses and local governments to use My Number Card,and improvement of related systems for the early introduction of the confirmation of
doctor's license and other national qualifications.
It will also eliminate 9,000 analog regulations, which prevent the use of digitaltechnology, in two years based on digital principles. It will strengthen analysis ofcyberattack techniques and provide support for the introduction of security services
for SMEs. In addition, in order to improve productivity through the promotion of DX
of SMEs, it will provide support from the introduction of IT all the way through to
its establishment.
In order to realize DX in the medical and nursing care sectors, the government will
promote the development of a schedule for the establishment of a national medical
information platform and the expansion of the use of online qualification
confirmation.
To support individualized and collaborative learning, the government will promote
educational DX, including the GIGA School Concept and the sophistication ofteacher training. It will also promote DX in the transportation and logistics sectors.
The government will promote EBPM 22 by utilizing real-time data, etc.
21F

In order to promote a Digital Garden City Nation, the government will establish theDigital Garden City Nation Grant and expand the scope of its support to include thedevelopment of facilities by private companies. At the same time, in addition topromoting the supercity concept, the government will promote the development of
infrastructure such as optical fiber and 5G base stations. Efforts will also be made to
improve citizens' digital literacy, such as supporting the use of digital technology by
the elderly. In addition, the government will formulate a new comprehensive strategy
for a Digital Garden City Nation in December this year.
The government will work on to centralize the economic and social polarity by
22 Abbreviation for Evidence-Based Policy Making.

34

developing an environment for promoting Web 3.0, expanding the use of contents
using the metaverse and NFT 23 , and promoting overseas expansion of broadcast
contents that convey the attractiveness of Japan.
22 F

▪
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▪
▪
▪
▪

▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

Securing domestic production hubs for advanced semiconductors (Ministry of Economy,
Trade and Industry) [Afore-cited]
R&D project to strengthen infrastructure for post-5G information and communication
systems (Ministry of Economy, Trade and Industry) [Afore-cited]
Creation of a permanent fund to promote research and development of innovative
information and communications technologies (Beyond 5G (6G)) (Ministry of Internal
Affairs and Communications)
Expenses for the development of a technology map (Digital Agency)
Modification of the license registration and management system related to online
applications for doctor's license and other national qualifications (Digital Agency)
Strengthening of measures to promote the My Number Card and improving its
convenience (Nationwide expansion of My Number Card Point by municipalities,
promoting the use of My Number Card in the quasi-public sector, etc.) (Ministry ofInternal Affairs and Communications; Digital Agency)
Cybersecurity measures (Cabinet Secretariat; Digital Agency; Ministry of Internal
Affairs and Communications)
Initiatives to integrate My Number Card with health insurance cards (Promotion for the
expansion of use of online qualification confirmation) (Ministry of Health, Labour andWelfare)Project to promote SMEs to upgrade their productivity (Ministry of Economy, Trade andIndustry) [Afore-cited]
Project to provide flexible support according to changes in the business environment(Ministry of Economy, Trade and Industry) [Afore-cited]
Development of the national medical information platform (Ministry of Health, Labourand Welfare)
Digitization of immunization operations (Ministry of Health, Labour and Welfare)Development of environment for safe and accurate operation of electronic prescriptions
and dissemination of Healthcare Public Key Infrastructure (HPKI) (Ministry of Health,Labour and Welfare)Promotion of the GIGA School Concept (Ministry of Education, Culture, Sports, Scienceand Technology)
Support for the sophistication of teacher training (Ministry of Education, Culture, Sports,
Science and Technology) [Afore-cited]
Subsidy for the Vision for a Digital Garden City Nation (Cabinet Office) [Afore-cited]
Promotion of initiatives in the Super City and Digital Garden Health Special Zone
(Cabinet Office)Project to develop mobile phone service areas and advanced radio environment (5G,
optical fiber) (Ministry of Internal Affairs and Communications)
Project to promote the use of local digital infrastructure (Implementation support such as

23 Abbreviation for Non-Fungible Token. NFT is "digital data that cannot be falsified or tampered with," having thefunction to attach a unique property to digital data to ensure its authenticity and the function to track transaction
history on the blockchain.

35

▪
▪

▪
▪
▪
▪
▪
▪
▪
▪
▪
▪
▪

▪

the introduction of local 5G) (Ministry of Internal Affairs and Communications)
Project to promote the popularization and development of Telework (Ministry of Internal
Affairs and Communications)
Environmental development by the Digital Promotion Committee, etc., digital utilization
support and promotion, improvement of digital literacy of the people (Digital Agency;
Ministry of Internal Affairs and Communications; Ministry of Education, Culture, Sports,
Science and Technology)
Project to promote the overseas deployment of the Japanese content industry andstrengthen its infrastructure (Ministry of Economy, Trade and Industry) [Afore-cited]
Overseas dissemination of TV content and enhancement of local information sharing anddissemination (Ministry of Internal Affairs and Communications) [Afore-cited]
Project to strengthen disaster resilience through cable television introducing optical
network toward the establishment of “new normal” (Ministry of Internal Affairs andCommunications)
Promoting DX in the land, infrastructure, transport, and tourism sector (Infrastructure,transportation, logistics, smart cities, roads, buildings and cities, ships, marine industry,
ports and harbors) (Ministry of Land, Infrastructure, Transport and Tourism)
Extension of measures to enhance discounts on expressway tolls for big and frequent
users (Ministry of Land, Infrastructure, Transport and Tourism)
Promotion of development and marketing of Software as a medical device (SaMD) that
supports quality medical care (Cabinet Office)Promotion of utilization of medical data in light of the trends of the EU (Cabinet Office)Promotion of dissemination and public relations for smooth start of the invoice system(Ministry of Finance)
Work Style Reform for national government employees (Introduction of work time
management system) (Digital Agency)
Use of real-time data in V-RESAS and economic analysis, etc. (Digital Agency; Cabinet
Office)Promotion of digitization of administrative and quasi-public sectors (Cabinet Office;Digital Agency; Ministry of Justice; Financial Services Agency; Consumer Affairs
Agency; Ministry of Internal Affairs and Communications; Ministry of Foreign Affairs;
Ministry of Education, Culture, Sports, Science and Technology; Ministry of Health,Labour and Welfare; Ministry of Agriculture, Forestry and Fisheries; Ministry of Land,
Infrastructure, Transport and Tourism; National Diet Library)
Promotion of digitalization in the judicial sector such as criminal proceedings and civil
court proceedings (Digital Agency; Ministry of Justice; Supreme Court), etc.

3. Realization of inclusive society
The foundation that supports the new form of capitalism is a diverse society in which
everyone, young and old, with or without disabilities, can feel a sense of purpose in life.
In addition to promoting the construction of an all-generational social security system andstrengthening measures to address declining birthrate and support for children and childrearing households, efforts will be made to realize an inclusive society, including theactive participation of women and measures against loneliness and isolation.

36

(1) Measures to address declining birthrate and support for children
and child-rearing households
The situation of declining birthrate is critical. During the COVID-19 pandemic, thenumber of marriages fell by about 100,000 in the past two years and the number ofbirths fell to a level not projected to be reached for about seven years. The
government will enhance marriage support and support for all pregnant women,children, and child-rearing households.
Focusing on households with babies between 0 and 2 years of age that cannot receive
sufficient support, the government will enhance consistent accompanied consultationand support during pregnancy, at the time of childbirth, and during child rearing. It
will also create and continuously implement a financial support project in an
integrated manner through cooperation with local governments to subsidize the costof purchasing items related to pregnancy and childbirth and reduce the service feesfor prenatal and postnatal care, temporary childcare, and housekeeping support 24. In
addition, the lump-sum allowance for childbirth and childcare will be significantly
increased in the initial budget for fiscal 2023.
23F

In order to realize the New Childcare Support Plan, the government will provide
support for creating places for children and their diet, including the development ofnursery schools and kindergartens, as well as cafeterias for children from singleparent families in need and families requiring support.
It will work together with the department/bureau heads and the boards of education
to verify the effectiveness of the promotion of cooperation between after-school
children's clubs and after-school children's classrooms, from the perspective ofpromoting the use of school facilities. The results of the verification will be reflected
in a new after-school plan.
In order to ensure healthy growth of all children regardless of their growthenvironment, the government will provide support toward the independence of
single-parent families.
Efforts will be made to enhance safety and security measures for children to prevent
repeated accidents of school buses.
In April 2023, the government will establish the Child and Family Affairs Agency,
and with regard to policies for children, it will systematically summarize necessary
policies from the perspective of children, and will enhance and strongly promote thepolicies.
▪

Enhancement of accompanied consultation and support for childbirth and childcare

24 As financial support, a total of 100,000 yen will be provided during a period of time from the date of pregnancy

notification to the date of birth notification. The project will be accelerated with the first day of the next year as thereference date. In the process of preparing the initial budget for fiscal 2023, the government will examine how tosecure stable financial resources and how to implement the project efficiently in order to continuously provide thesupport, and take necessary measures. To accelerate the project with the first day of the next year as the referencedate, the government will take transitional measures to retroactively apply financial support. Childbirths on or after
the reference date are subject to the financial support to be provided at the time of pregnancy notification, andchildbirths during or after April 2022 are subject to the financial support to be provided at the time of pregnancy
notification and birth notification.

37

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▪
▪
▪
▪
▪
▪
▪
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▪

(Ministry of Health, Labour and Welfare)Development of facilities for postpartum care (Ministry of Health, Labour and Welfare)Strengthening of measures for declining birthrate in the region (Cabinet Office)Development of nursery centers (Nursery school development) (Ministry of Health,Labour and Welfare)
Improvement of facilities for private kindergartens and certified childcare centers(Ministry of Education, Culture, Sports, Science and Technology)
Development and promotion of after-school children's clubs (Cabinet Office)
Demonstration model project to promote cooperation with after-school children's clubs(Ministry of Health, Labour and Welfare)Support project for the development of local networks for children’s future (Grant for
Supporting Children’s Future) (Cabinet Office) [Afore-cited]
Joint model project with NPOs to support the creation of places for children (Ministry of
Health, Labour and Welfare) [Afore-cited]
Emergency measures for food loss reduction and for supporting food banks, andpromotion of food and nutrition education (Ministry of Agriculture, Forestry and
Fisheries) [Afore-cited]
Project to strengthen one-stop consultation system for single-parent families (Ministryof Health, Labour and Welfare)
Meal support project for children from single-parent families (Ministry of Health, Labourand Welfare)
Safety and security measures for children (Support for repair of school buses, monitoring
and attendance management systems, and training on the safety management manual)(Cabinet Office; Ministry of Education, Culture, Sports, Science and Technology;
Ministry of Health, Labour and Welfare)Research and study to reflect opinions of children and young people (Cabinet Secretariat),etc.

(2) Active participant of women
Toward the realization of women's economic independence, which is positioned as
the core of the new form of capitalism, the government will address the gender wage
gap and other structural issues facing women in our country. The government will
provide support for efforts by local governments to promote the active participationof women, including support for the development of female digital human resources
and female entrepreneurs. It will continue to work with the recognition that it isimportant to eliminate the gender gap for developing and securing digital humanresources. In addition, the government will ensure compliance with equal pay for
equal work, and provide support for shift from non-regular employees, many ofwhom are women, to regular employees and improvement in their treatment. It will
review social security, which has been pointed out as a constraint on employment of
women, to make it neutral in terms of work styles. To realize a society in which
women can live with dignity and pride, the government will further enhance
consultation and support systems for victims of spousal and sexual violence, andpromote relief measures to prevent victims from appearing in pornographic videos.
▪

Grants for promoting active participation of women in the region (Cabinet Office)

38

▪
▪
▪
▪

[Afore-cited]
Efforts to more thoroughly implement the principle of equal pay for equal work (Ministryof Health, Labour and Welfare) [Afore-cited]
Promoting shift from non-regular employees to regular employees and improvement intheir treatment through the career advancement subsidies (Ministry of Health, Labourand Welfare) [Afore-cited]
Measures against sexual crimes and sexual violence and support for victims of domestic
violence (Cabinet Office)Project to strengthen the HPV consultation and support system and to strengthen the
medical system (Ministry of Health, Labour and Welfare), etc.

(3) Measures against loneliness and isolation, and support for people
facing difficulties such as the employment ice age generation
With the prolonged impact of the COVID-19 pandemic, loneliness and isolation havebecome serious social problems. While promoting initiatives to strengthen
consultation systems and building regional collaborative systems, the government
will provide support to the needy and socially withdrawn people at high risk ofloneliness and isolation, as well as to private organizations working on suicide
prevention.
The government will provide support for local governments in their efforts to support
the employment of the employment ice age generation and enhance support
according to local conditions.
The government will promote the creation of an inclusive society where people withdifficulties can live in the community in peace. To achieve this, the government will
promote the development of organizations that support social participation of persons
with disabilities and their lives in the community.
▪
▪
▪
▪
▪
▪
▪
▪
▪

Environment development for full-scale loneliness and isolation telephone consultation(Cabinet Secretariat)
Substantive survey on measures to prevent loneliness and isolation in local communities(Cabinet Secretariat)
Subsidized project for activities of private organizations that support the needy, etc.
(Ministry of Health, Labour and Welfare)Support for activities of residential support councils (Ministry of Land, Infrastructure,
Transport and Tourism)
Strengthening measures for suicide prevention to combat loneliness and isolation(Ministry of Health, Labour and Welfare)Support for the advanced and active efforts of the employment ice age generation in theregion (Cabinet Office) [Afore-cited]
Project to develop organizations that support social participation of persons withdisabilities and their lives in the community (Ministry of Health, Labour and Welfare)
Ainu policy promotion grants (Cabinet Office)Subsidy for model project for regional cooperation SDGs (Cabinet Office), etc.

39IV. Ensuring Public Safety and Security, Including Disaster
Prevention and Mitigation, Promoting National Resilience, andResponding to Changes in the Diplomatic and Security
Environment
1. Reinforcement of pandemic response in the coexistence with
COVID-19(1) Reinforcement and prioritization of healthcare system and support
for protecting employment and lives
With regard to measures in accordance with the Infectious Diseases Act 25 , thegovernment will strengthen and focus on the healthcare system based on an idea ofproviding appropriate medical care to the elderly and those at risk of serious illness.
24F

The government will provide support for efforts of prefectures to secure hospital beds,
accommodations, and medical facilities, and to secure medical personnel. In order toprepare for an increase in demand due to the spread of COVID-19 in the future, thegovernment will develop a testing environment 26, such as the establishment of a PCR
testing system and securing antigenic qualitative test kits through the purchase of
inventories, etc., as well as secure and stockpile medical supplies.
25F

With regard to necessary expenses running short as a result of infection spread, thegovernment will continue to respond promptly and flexibly so that municipalities cantake measures against COVID-19 without financial anxiety through the timely andappropriate utilization of temporary grants for local revitalization and reserve funds.
The government will continue to promptly provide employment adjustment grants 27,
and take all possible measures to support the needy 28.
26F

27F

▪
▪
▪
▪
▪

Emergency comprehensive support grant related to COVID-19 (for the medical industry)(Ministry of Health, Labour and Welfare)
Securing COVID-19 antigen test kits (Ministry of Health, Labour and Welfare)
Project of stockpiling medical supplies (Ministry of Health, Labour and Welfare)
COVID-19 temporary grant for regional revitalization (Cabinet Office) [Afore-cited]
Project for COVID-19 control (Ministry of Health, Labour and Welfare)

25 Act on Prevention of Infectious Diseases and Medical Care for Patients with Infectious Diseases (Act No. 114 of

1998)

26 The government will continue to provide support to enable free testing for asymptomatic residents who are at riskof infection, carried out at the discretion of the prefecture, if infection spread is expected.

27 Subsidies and support grants for the closure of elementary schools, etc., will be provided appropriately, taking into

account the status of infection and school closures, etc.

28 Looking ahead to the start of reimbursement for special loans in January 2023, such as emergency petty funds, andthe deadline for applications for self-support grants for the needy at the end of December this year, the government
will provide detailed follow-up in a push manner according to the situation of each borrower, including recipients ofself-support grants, as well as strengthen the system to provide flexible consultation and support, including the active
use of exemption and extension systems, provide support to local NPOs, etc., and extend the special provision of
housing security benefits until the end of the fiscal year.

40

▪
▪
▪
▪
▪
▪

Project for securing nurse staff for COVID-19, etc. (Ministry of Health, Labour andWelfare)Gradual reduction of special measures for employment adjustment subsidies (Ministryof Health, Labour and Welfare) [Afore-cited]
Housing security benefits (Ministry of Health, Labour and Welfare)
Grant for strengthening the COVID-19 safety net (Ministry of Health, Labour andWelfare)Subsidies and support grants for the closure of elementary schools due to COVID-19(Ministry of Health, Labour and Welfare)
Grant system for pregnant women who are taking leave due to maternal healthmanagement measures related to COVID-19 (Ministry of Health, Labour and Welfare),etc.

(2) Prevention of spreading infections by vaccination and preparation
for the next wave
What is important for preventing infection spread is prevention by vaccination. The
government will develop an Omicron Variant vaccine system for all citizens 29 toaccelerate vaccination. Efforts will be made continuously to prevent infection spreadin schools, etc., and to disseminate information to prevent infection spread.
28F

To shift to a new stage of coexistence with COVID-19, efforts will be made based on
scientific knowledge so that peacetime socio-economic activities can be carried out
to the extent possible. To prepare for an infectious disease crisis in the future, thegovernment will work to amend the Infectious Diseases Act and other relevant laws
to enable flexible and effective emergency response based on the law. Efforts will bemade to strengthen the government's command and control functions and to establish
a new organization of experts on infectious diseases (the so-called Japanese CDC).
The government will promote efforts to ensure a stable domestic supply of medicallyimportant drugs and medical devices. To prepare for the next pandemic, thegovernment will provide support for research and development of vaccines andeffective therapeutics, etc. It will collaborate with international organizations topromote international cooperation, including promoting vaccination in developing
countries.
▪
▪
▪
▪

Securing a system for COVID-19 vaccination, etc. (Ministry of Health, Labour andWelfare)Improvement in systems related to COVID-19 vaccination and development of an
infectious disease system (Digital Agency)
Research and study of key technologies related to COVID-19 control, domestic public
relations, and public awareness (Cabinet Secretariat)
Support for infectious diseases control at kindergartens, nursery schools, elementary
schools, junior high schools, high schools, special needs schools, foster homes, welfare
facilities for people with disabilities, and overseas educational facilities (Ministry of
Education, Culture, Sports, Science and Technology; Ministry of Health, Labour and

29 All persons aged 12 years or older who have completed the initial vaccination (twice).

41

▪
▪
▪
▪
▪
▪
▪
▪
▪

Welfare)Support for infectious diseases control in regional child and childcare support project,living and learning support project for children from single-parent families, and postnatal care project (Cabinet Office; Ministry of Health, Labour and Welfare)
Policy studies for the shift to a new stage of coexistence with COVID-19 (Ministry of
Health, Labour and Welfare)Domestic production of antibacterial drugs (Ministry of Health, Labour and Welfare)
Project to ensure a stable supply of medical devices through understanding of the actual
condition of the supply chain (Ministry of Health, Labour and Welfare)Support for large-scale clinical trials of vaccines (Ministry of Health, Labour andWelfare) [Afore-cited]
Research and development on effective therapeutics for strengthening infectious diseasecrisis management in the coexistence with COVID-19 (Ministry of Health, Labour andWelfare)Project for strengthening infectious disease control (Ministry of Health, Labour andWelfare)Improvement of facilities and equipment necessary to strengthen the functions andsystem of the National Institute of Infectious Diseases (Ministry of Health, Labour andWelfare)Cooperation in infectious disease control in developing countries through internationalorganizations (Support through COVAX Facility 30, GHIT 31 and UNDP, CEPI 32, Global
Fund 33, and World Bank) (Ministry of Health, Labour and Welfare; Ministry of Foreign
Affairs and Ministry of Finance), etc.
29F

30F

31F

32F

2. Disaster risk reduction and enhancement of national
resilience
Due to the impact of climate change, natural disasters have become more severe andoccurred frequently this year, with a series of torrential rain and record-breaking rainfall
caused by band-shaped rainfall areas. By the efforts for disaster prevention, disastermitigation, and national resilience made so far, damages have been prevented andcontrolled in some areas. However, in order to overcome increasingly severe natural
disasters and national crises such as aging infrastructure, and to protect the lives, property,
and livelihoods of the people, the government will secure a necessary and sufficientbudget based on the Basic Plan, taking into account the hike in material prices, etc., andwill strongly promote integrated tangible and intangible measures by appropriately
combining self-help, mutual aid, and public assistance. In addition, taking into accountthe importance of promoting national resilience continuously and stably with a clear
outlook over the medium to long term, the government will examine the next basic plan
to promote further initiatives.
30 Abbreviation for COVID-19 Vaccine Global Access Facility. It is a funding and supply coordination mechanism

operated by the Gavi Vaccine Alliance in collaboration with WHO, UNICEF, and CEPI to ensure equitable accessto COVID-19 vaccines in developing and other countries.
31 Abbreviation for Global Health Innovative Technology Fund.
32 Abbreviation for Coalition for Epidemic Preparedness Innovations.
33 The Global Fund or the Global Fund to Fight AIDS, Tuberculosis and Malaria.

42In accordance with the "Five-Year Acceleration Measures for Disaster Prevention,
Disaster Mitigation, and Building National Resilience," the government will continue topromote measures to prevent and minimize damage to lives and property, such as flood
control in watersheds, and to promote efforts to support the economy and people's lives,
such as the construction of disaster-resistant transportation networks and lifelines, while
taking measures against aging based on the concept of preventive maintenance. The
government will also promote DX in the infrastructure and disaster prevention sectors toaccelerate the use of digital technologies in the prediction, collection, accumulation, andtransmission of disaster-related information, and on-site response. In addition to thesemeasures, the government will promote measures that need to be newly taken in light ofthe disasters that occurred this year.
▪

▪

▪
▪

▪

▪
▪
▪
▪
▪

▪

Promotion of flood control in watersheds through collaboration among government
agencies, the public sector, and the private sector in view of climate change (Ministry ofAgriculture, Forestry and Fisheries; Ministry of Land, Infrastructure, Transport andTourism)Strengthening disaster resilience of housing and buildings, school facilities, medical
facilities, social welfare facilities, correctional facilities, rehabilitation facilities, andpublic facilities, etc. (Ministry of Justice; Ministry of Education, Culture, Sports, Scienceand Technology; Ministry of Health, Labour and Welfare; Ministry of Economy, Tradeand Industry; Ministry of Land, Infrastructure, Transport and Tourism; Ministry of theEnvironment)
Enhancing disaster resilience of transportation networks (railways, ports and sea routes,etc.) (Ministry of Land, Infrastructure, Transport and Tourism)
Strengthening disaster resilience of information and communications facilities, energy
facilities, water and sewerage facilities, and waste treatment facilities (Ministry ofInternal Affairs and Communications; Ministry of Health, Labour and Welfare; Ministryof Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport andTourism; Ministry of the Environment)
Elimination of missing links on high-standard highways that enable rapid passage after
disasters and strengthening a double network between high-standard highways and direct
national highways that achieve alternative function (Ministry of Land, Infrastructure,
Transport and Tourism)
Local measures for road infrastructure, including the elimination of utility poles(Ministry of Land, Infrastructure, Transport and Tourism)
Prevention of disasters by embankment (Ministry of Land, Infrastructure, Transport andTourism)
Promotion of large-scale earthquake and tsunami evacuation measures in cold and snowy
regions (Cabinet Office)
Maintenance of the functions of the radiation monitoring system (Ministry of theEnvironment)
Measures for aging of critical infrastructure such as rivers, dams, roads, urban parks,
railways, ports and fishing ports, reservoirs, agricultural water facilities, and school
facilities (Ministry of Education, Culture, Sports, Science and Technology; Ministry of
Health, Labour and Welfare; Ministry of Agriculture, Forestry and Fisheries; Ministry ofLand, Infrastructure, Transport and Tourism)
Measures for the sophistication of disaster prevention and weather information, including
improving the accuracy of predictions of heavy rain caused by band-shaped rainfall areas

43

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▪
▪
▪
▪
▪

and typhoons, etc. (Ministry of Land, Infrastructure, Transport and Tourism)
Multiplexing and sophistication of information transmission methods in case of a disaster(Cabinet Office; Digital Agency; Ministry of Internal Affairs and Communications;
Ministry of Land, Infrastructure, Transport and Tourism)
Promotion of sophistication of infrastructure development and management using digitaltechnology (Ministry of Land, Infrastructure, Transport and Tourism)
Strengthening the disaster response capability of the police department by improving
equipment and materials (National Police Agency)
Promoting the development of materials/equipment and DX, etc., necessary to strengthen
fire and disaster prevention capabilities (Digital Agency; Ministry of Internal Affairs andCommunications)
Strengthening the disaster response capability of the Self-Defense Forces (Ministry of
Defense)Measures concerning marine debris (Ministry of the Environment), etc.

3. Acceleration of reconstruction and recovery from natural
disasters
The government will commit itself to recovery and reconstruction after the Great East
Japan Earthquake and other natural disasters.
The government will safely and steadily promote decommissioning and environmental
restoration of the Fukushima Daiichi Nuclear Power Plant of Tokyo Electric Power Co.
The government will take all necessary measures, including advanced research anddevelopment on decommissioning and fund support to realize sustainable fisheries toovercome the impacts associated with the release of ALPS treated water into the ocean.
It will also promote restoration of infrastructure and public facilities such as hospitals andschools damaged by recent natural disasters.
▪
▪
▪
▪
▪
▪
▪

Support for technically difficult research and development, such as the removal of fueldebris and the treatment and disposal of radioactive waste (Ministry of Economy, Tradeand Industry)Support for fishermen to overcome the impacts associated with the release of ALPS
treated water into the ocean (Ministry of Economy, Trade and Industry)
Restoration of rivers, erosion control, roads, ports, railways, public housing, and otherfacilities after disasters (Ministry of Land, Infrastructure, Transport and Tourism)
Restoration of agricultural, forestry and fishery facilities after disasters (Ministry ofAgriculture, Forestry and Fisheries)
Restoration of water facilities, medical facilities, and social welfare facilities after
disasters (Ministry of Health, Labour and Welfare)
Restoration of school facilities and cultural properties after disasters (Ministry of
Education, Culture, Sports, Science and Technology)
Support for the recovery of fishery resources from red tide (Ministry of Agriculture,
Forestry and Fisheries), etc.

44

4. Measures against changing diplomatic and national security
environment(1) Diplomacy and security
Amid the rapidly changing international situation, the government will adopt a
flexible and dynamic new-age realist diplomacy while strengthening human
networks in order to maintain and strengthen the international order based on the ruleof law, with an eye on hosting the G7 Hiroshima Summit next year and serving as a
non-permanent member of the United Nations Security Council, and to address
global issues and our country’s challenges. In the wake of the Russian invasion of
Ukraine, the government will provide support to international society including
emergency support to the so-called "Global South" countries and regions affected by
the complex crisis, such as due to the severe impact of the hike in food and energy
prices associated with the situation in Ukraine, in addition to humanitarian support,
including assistance for wintering, to Ukraine and neighboring countries receiving
refugees from Ukraine, financial support to Ukraine, and support for recovery andreconstruction. The government will also take measures to companies in our country,
which have been greatly affected by the hike in prices and the depreciation of the yen
overseas, for the smooth implementation of ODA projects in our country.
In light of the rapidly intensifying security environment, the government will work
to secure stable operation of the Self-Defense Forces against air threats to our country,
strengthen the infrastructure of the Self-Defense Forces, improve living and working
conditions, and steadily implement the reorganization of US forces.
At the same time, efforts will be made to strengthen the strategic maritime security
system and promote comprehensive maritime security through understanding of themaritime situation. The government will promote smooth enforcement of the Act on
the Review of Important Real Estate 34.
33 F

▪
▪
▪
▪
▪
▪

Expenses related to the G7 Hiroshima Summit (National Police Agency; Ministry ofInternal Affairs and Communications; Ministry of Foreign Affairs; Ministry of Health,Labour and Welfare)Strengthening the capacity to respond to information warfare (Ministry of Foreign
Affairs)
Support for contributing to strengthening the functions of the United Nations and otherinternational organizations as a member of the UN Security Council (Ministry of Foreign
Affairs)
Support to Ukraine and neighboring countries (Ministry of Foreign Affairs, Ministry of
Finance)
Humanitarian support to countries and regions including those affected by the invasionof Ukraine (Ministry of Foreign Affairs)
Intensification of diplomatic efforts aimed at promoting economic security contributing
to energy security, etc. (Ministry of Foreign Affairs) [Afore-cited]

34 Act on the Review and Regulation of the Use of Real Estate Surrounding Important Facilities and on Remote

Territorial Islands (Act No. 84 of 2021).

45

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▪
▪
▪
▪
▪
▪
▪
▪
▪

Promotion of responsible corporate behavior in countries where Japanese companies
have operated (support for implementation of human rights due diligence) (Ministry ofForeign Affairs)
Non-nuclear youth leader fund contribution (Ministry of Foreign Affairs)
Response to grant aid projects affected by the weak yen and hike in prices (Ministry ofForeign Affairs)
Support for international cooperation through UHC2030 to promote UHC (Ministry ofForeign Affairs)
Strengthening crisis management functions of the Prime Minister's Office (including
those related to J-ALERT) (Cabinet Secretariat)
Strengthening the government's information gathering function and development of
information gathering satellites [Afore-cited] (Cabinet Secretariat)
Strengthening the disaster response capability of the Self-Defense Forces (Ministry of
Defense) [Afore-cited]
Response by the Self-Defense Forces to the changing security environment (Ministry of
Defense)Emergency project for comprehensive and strategic ocean policy (Cabinet Office)Strengthening strategic maritime security system (Ministry of Land, Infrastructure,
Transport and Tourism)
Smooth enforcement of the Act on the Review of Important Real Estate (Cabinet Office),
etc.

(2) Economic and food security
With major changes in the international situation, such as Russia's invasion of
Ukraine, the importance of economic and food security has been higher than everbefore.
With regard to economic security, the government will promptly establish a 500
billion yen framework to support the research and development of quantum, AI, andother advanced critical technologies toward demonstration and practical use. In
addition, in order to strengthen supply chain resilience, the government will promptly
designate important materials such as semiconductors, important minerals (rareearths, etc.), storage batteries, and pharmaceuticals, and take various support
measures for the production, supply, stockpiling, and development of alternative
materials according to the characteristics of the materials through the establishment
and utilization of funds. The government will also strengthen food security by
expanding domestic production of agricultural products and fertilizers that are highly
dependent on foreign countries. In addition, it will enhance its capabilities forcybersecurity and intelligence.
This will ensure a resilient economic structure that is not unduly affected by changes
in international situation and fluctuations in international commodity markets.
▪
▪

Strengthening supply chain resilience contributing to ensuring economic security(Cabinet Office)Strengthening the Program for Developing Critical Economic and Security Technologies(Cabinet Office) [Afore-cited]

46

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▪
▪
▪
▪

Strengthening supply chain resilience and ensuring economic security in each sector andmaterial (Ministry of Health, Labour and Welfare; Ministry of Agriculture, Forestry and
Fisheries; Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure,
Transport and Tourism) [Afore-cited]
Cybersecurity measures (Cabinet Secretariat; Digital Agency; Ministry of Internal
Affairs and Communications) [Afore-cited]
Intensification of diplomatic efforts aimed at promoting economic security contributing
to energy security, etc. (Ministry of Foreign Affairs) [Afore-cited]
Smooth enforcement of the Act on the Review of Important Real Estate (Cabinet Office)[Afore-cited]
Measures to increase the production and use of products highly dependent on foreigncountries and to substitute and reduce the use of production materials, etc., in order toensure food security (Ministry of Agriculture, Forestry and Fisheries, etc.) [Aforecited]34F 35, etc.

5. Ensuring people’s safety and security
By promoting the "support package for safety and security measures for children," which
includes support for the repair of safety equipment for school buses, the government will
ensure the safety and security of children and promote measures to enable citizens to livein safety and security.
The government will strengthen measures against malicious business practices, such as
reviewing laws related to consumer contracts, etc., and promote consumer policies that
address the digitalization of society. In view of the G7 Hiroshima Summit, thegovernment will maintain and improve security and safety by strengthening police escort,
vigilance, and security, and strengthening crisis management and intelligence capabilities.
▪

▪
▪
▪
▪
▪
▪
▪

Safety and security measures for children (Support for repair of school buses, monitoring
and attendance management systems, and training on the safety management manual)(Cabinet Office; Ministry of Education, Culture, Sports, Science and Technology;
Ministry of Health, Labour and Welfare) [Afore-cited]
Traffic safety measures (Ensuring safe traffic on school routes, etc.) (Ministry of Land,
Infrastructure, Transport and Tourism)
Project for sophistication of measures against money laundering using AI (Financial
Services Agency)
Control of infectious diseases of domestic animals and control of designated alien species(Ministry of Agriculture, Forestry and Fisheries; Ministry of the Environment)
Support for fishermen affected by illegal operations by foreign fishing boats (Ministryof Agriculture, Forestry and Fisheries)
Strengthening and improvement of disaster response capabilities of distribution bases(Ministry of Land, Infrastructure, Transport and Tourism)
Safety measures for small passenger ships (Ministry of Land, Infrastructure, Transport
and Tourism)
Securing the safety of regional railways and promotion of barrier-free railway stations
and the construction of platform doors (Ministry of Land, Infrastructure, Transport and

35 Measures described in Chapter 2, I2. (2) "Establishing a secure and resilient food supply system."

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▪
▪
▪
▪
▪
▪
▪

▪
▪
▪

V.

Tourism)
Enhancing relief measures for car accident victims (Ministry of Land, Infrastructure,
Transport and Tourism)
Measures concerning marine debris (Ministry of the Environment) [Afore-cited]
Project for accelerating analysis of chemical substances based on the national survey onchildren's health and environment (Ecochil Survey) (Ministry of the Environment)
Securing a reserve fund for currency collection for the safe and secure circulation ofcurrency (Ministry of Finance)
Ensuring the safety and security of consumers (Project for enhancing and strengthening
regional consumer administration, Measures against misrepresentation in digitaladvertising, etc.) (Consumer Affairs Agency)
Enhancing and strengthening comprehensive legal support through the Japan Legal
Support Center (Ministry of Justice)
Expenses related to the G7 Hiroshima Summit and preparation of equipment andmaterials for strengthening security (National Police Agency; Ministry of Internal Affairs
and Communications; Ministry of Foreign Affairs; Ministry of Health, Labour andWelfare) [Afore-cited]
Enhancing and strengthening disaster prevention measures in areas around nuclear power
plants (Cabinet Office)Enhancing and strengthening civil protection-related systems (Digital Agency)
Emergency measures to strengthen the response capabilities of diplomatic missions
abroad in case of emergency (Ministry of Foreign Affairs), etc.

Preparation for Future Shocks

The government will increase the amount of the “Contingency Funds for Preparedness
against COVID-19 and Steep Rises in Crude Oil Prices and the Cost of Living” in orderto keep the country well-prepared for the spread of the coronavirus and for inflation.
Moreover, as concerns over global recession are mounting, the Government newly
establishes the “Contingency Funds for Economic Preparedness in Light of the Situationin Ukraine (working title)” in order to enable flexible and resilient response to a possible
economic crisis that might occur due to a change in the situation in Ukraine or in otherinternational affairs or that might be triggered by a major cold wave or other disaster.

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Appendix

Scale of these Measures(Fiscal Expense)(Project Scale)I. Countermeasures Against Price Hikes and Efforts for Wage
Increases

Approx. 12.2 trillion yen

Approx. 37.5 trillion yen

II. Recovery and Reinforcement of Local “Profitability”
Utilizing the Depreciation of the Yen

Approx. 4.8 trillion yen

Approx. 8.9 trillion yen

III. Acceleration of a “New Form of Capitalism”

Approx. 6.7 trillion yen

Approx. 9.8 trillion yen

IV. Ensuring Public Safety and Security, Including Disaster
Prevention and Mitigation, Promoting National Resilience,and Responding to Changes in the Diplomatic and Security
Environment

Approx. 10.6 trillion yen

Approx. 10.7 trillion yen

V. Preparation for Future Shocks

Approx. 4.7 trillion yen

Approx. 4.7 trillion yen

Approx. 39 trillion yen

Approx. 71.6 trillion yen

Total

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(Reference) Breakdown of Fiscal Expense(Fiscal Expense)

National and local
expenditures

Fiscal investment andloans

I. Countermeasures Against Price
Hikes and Efforts for Wage
Increases

Approx. 12.2 trillion yen

Approx. 12 trillion yen

Approx. 200 billion yen

II. Recovery and Reinforcement ofLocal “Profitability” Utilizing
the Depreciation of the Yen

Approx. 4.8 trillion yen

Approx. 4.8 trillion yen―

III. Acceleration of a “New Form of
Capitalism”

Approx. 6.7 trillion yen

Approx. 6 trillion yen

Approx. 700 billion yen

IV. Ensuring Public Safety andSecurity, Including Disaster
Prevention and Mitigation,
Promoting National Resilience,and Responding to Changes inthe Diplomatic and Security
Environment

Approx. 10.6 trillion yen

Approx. 10.1 trillion yen

Approx. 500 billion yen

V. Preparation for Future Shocks

Approx. 4.7 trillion yen

Approx. 4.7 trillion yen

–

Total

Approx. 39 trillion yen

Approx. 37.6 trillion yen(Note 1)

Approx. 1.4 trillion yen(Note 2)

(Note 1) The national budget is 35.6 trillion yen, of which the second supplementary budget for FY 2022 is 29.6 trillion yen(General account: 29.1 trillion yen, Special account: 500 billion yen).
(Note 2) The additional amount in the second supplementary budget for FY 2022 is 1 trillion yen.

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