Fiscal Spending

Japan’s prime minister said on Wednesday that the country must lean on targeted government spending to strengthen growth and lift tax revenue, pushing back against calls for sharp budget restraint as markets react nervously to rising debt levels.

Prime Minister Sanae Takaichi told a business policy forum in Tokyo that her administration remains committed to reviving a still fragile economy through carefully planned fiscal support, even as government borrowing costs rise.

“When I say proactive fiscal policy, I am talking about the strategic deployment of fiscal stimulus,” Takaichi said in a statement read at an economic panel hosted by …