ISHIBA Shigeru

Press Conference Following Passage of the Revised FY2025 Budget and Other Matters

delivered 1 April 2025

[ENGLISH TEXT BELOW TRANSLATED FROM THE ORIGINAL JAPANESE VIA GOOGLE TRANSLATE]

Thank you all for coming.

Yesterday, the FY2025 budget was passed by both the House of Representatives and the House of Councilors after amendments and was enacted. I would like to express my deepest gratitude to all those involved for their efforts and cooperation. Thank you very much.

First of all, I would like to apologize once again for the issue of my own gift certificate distribution. As reported in the media, on the 3rd of last month, prior to a dinner with 15 one-term elected members of the House of Representatives who belong to my party, I delivered gift certificates that I had prepared as souvenirs to the offices of each member of parliament, using my own money and at my own expense.

I delivered this letter with the intention of expressing my gratitude and appreciation to the many hardships that the Senator himself has endured, as well as to his family members who have supported him. However, I have been told for many years that I am not good with people, that I do not eat out enough, that I am stingy, or as people would call me, and I think that I have been quite concerned about this, but I must frankly admit that my behavior is far removed from the sensibilities of the people.

In this case, I have received a lot of criticism and rebukes from all quarters, such as, "You have never done such things before," "So what?" and "Don't forget who you are as ISHIBA." Perhaps I have lost sight of myself. I have taken this seriously and reflected deeply on it, and have renewed my resolve to follow the wishes of the people and to sincerely face their wishes. I will continue to work wholeheartedly in the future so that I may earn the trust of the people, so I ask for your continued support.

Regarding the so-called issue of politics and money, last year we achieved legal measures to abolish policy activity expenses, disclose the use of research, public relations and accommodation expenses (which used to be called correspondence expenses), return the remaining funds, and quickly establish a third-party institution based on the revised Political Funds Control Law.

Regarding corporate and group donations, our party believes that "disclosure is better than prohibition," and based on this idea, we have submitted a bill to strengthen disclosure to further strengthen transparency and openness, and have been holding serious discussions. Although the bill had not been voted on until the end of March this year, that is, until yesterday, I have been informed that an agreement was reached among the working-level officials of the Liberal Democratic Party, Komeito, and the Democratic Party for the People yesterday that "party branches that do not submit income and expenditure reports online will not be able to receive corporate and organizational donations," and that "the threshold amount for the bill to strengthen disclosure will be drastically lowered from over 10 million yen to over 50,000 yen." Based on this agreement, we will continue to hold discussions with each party and each faction, and will continue to have sincere discussions so that a final proposal can be reached.

We have three priorities in sincerely facing the lives of the people.

The Diet's deliberations on the FY2025 budget have seen the Diet amend the budget for the first time in 29 years in the House of Representatives and the first time in the House of Councilors. In a sense, this is historic.

During this time, we have been considering revising the high-cost medical care system to make it sustainable, but we have received criticism that our review process lacked carefulness. We have taken this seriously and decided to postpone implementation until autumn and to conduct further review through a careful process. We apologize for the inconvenience caused to the legislature and members of the Diet as we ended up making further revisions after the budget passed the House of Representatives. On the other hand, we believe that the fact that we have been able to reach a final decision by incorporating the results of policy discussions across party lines and the content of deliberations in the Diet, including on various issues other than high-cost medical care, is the result of a "deliberative Diet," and the Government will continue to work toward the realization of thorough discussion and a "deliberative Diet."

We will make the most of the FY2024 supplementary budget and the FY2025 budget, and will do our utmost to address the lives of the people head-on and sincerely, and to achieve the three priorities.

First, we will address the concerns of the people and eliminate various anxieties. Second, we will create an environment in which the people can fully realize their goals, so that they can have confidence that "tomorrow will be better than today." Third, we will promote initiatives to develop the socio-economy of the country and regions and to enhance feelings for their hometowns. Through these efforts, we hope that people all over the country who are facing population decline will take on new challenges in their "fun" hometowns and return to them, and that we will work together with you to realize a "fun Japan."

There are people who cannot make a living even if they work full-time. It is the responsibility of the government to ensure that such people can live in peace. The current situation in which low income levels are spurring labor shortages in local economies is something that cannot be overlooked. For this reason, we will compile effective measures by May to raise the minimum wage. In preparation for the establishment of a Disaster Prevention Agency in fiscal year 2026, we have held a meeting of experts in the field of disaster prevention, and are proceeding with our deliberations while taking into account the lessons learned from the Great East Japan Earthquake, the [2024] Noto Peninsula earthquake and heavy rains, and other disasters. In the current budget, we will steadily advance preparations, such as doubling the personnel and budget of the Cabinet Office Disaster Prevention Division from 110 to 220 people, and doubling the budget from 7.3 billion yen [approx. 50m U.S.D] to 14.6 billion yen [approx. 100m U.S.D].

We will also make drastic improvements to the environment in evacuation shelters. During the Great East Japan Earthquake, there were evacuation shelters in gymnasiums where people had to sleep in piles, but in the recent forest fires in Ofunato, tents have been set up that ensure privacy, and the environment has been greatly improved.

The fire in Ofunato has been designated a localized severe disaster, and we will steadily proceed with restoring the rich forests to their pre-fire state. Forest fires are occurring one after another in various places, including Ehime and Okayama, and we will do our utmost to implement more effective fire prevention and extinguishing measures.

In light of the road collapse accident in Yashio City, Saitama Prefecture, we have been conducting a nationwide special investigation on a priority basis since this month. We have decided to spend 61.5 billion yen of contingency funds to respond to the road collapse and heavy snowfall, and we will continue to work to ensure that no gaps are left in our response.

In order to accurately respond to the concerns of the public about the dangers and need for renewal of aging infrastructure, not limited to sewerage systems, and to steadily advance disaster prevention and mitigation and national resilience, we will further accelerate our current pace and formulate a medium-term national resilience implementation plan by June, with a scale of approximately 20 trillion yen over five years.

We will work to strengthen security measures, such as responding to so-called "illegal part-time jobs," which will increase by 1.3 billion yen from the previous year to 1.73 billion yen. This is a fundamental strengthening of defense capabilities. In terms of budget, it will be 8,474.8 billion yen, an increase of 749.8 billion yen from the previous year, and security cooperation with like-minded countries will be 8.1 billion yen, an increase of 3.1 billion yen from the previous year, and we will steadily promote these.

The social security system is the foundation of a secure life. In the midst of a declining birthrate and aging population, we will work to eliminate the anxiety about the future felt by the employment ice age generation and even younger generations, as well as the anxiety about the burden of insurance premiums on the people. Regarding social security reform, such as reducing the burden on the people, a three-party consultative body has been established between the Liberal Democratic Party, Komeito, and the Japan Innovation Party. We will thoroughly consider this during the budget formulation process until the end of this year, and we will put into action those that can be realized early from fiscal year 2026.

In order for the people of Japan to feel a sense of prosperity, it is both urgent and fundamental to realize wage increases. As I always say, "wage increases are the very core of our growth strategy," and based on this recognition, we must quickly realize and establish wage increases that can keep up with rising prices.

In the first tally of this spring's labor offensive, the RENGO has announced that wages will increase by 5.46%, which is higher than the previous year, and is an increase of 0.18% compared to last year. In addition, small and medium-sized labor unions have increased wages by more than 5% for the first time in 33 years, or 5.09% to be exact, which is an increase of 0.67% compared to last year. In the latest second tally, wages have increased by 5.40%, and small and medium-sized labor unions have increased wages by 4.92%. I believe that the government's efforts to date, such as the support for improving productivity using the supplementary budget, and the collaboration between the public and private sectors, are bearing fruit.

I hope that this momentum will spread throughout the country, and we will mobilize all our policies to strongly support wage increases for small and medium-sized enterprises and small business operators. In order to promote smooth price transfer in contracts with the national government and local governments, which are important for small and medium-sized enterprises in rural areas, we will formulate a new package of measures by June and effectively utilize the low bidding price investigation system. In order to improve the productivity of small and medium-sized enterprises, mainly in the service industry, we will formulate an industry-specific labor-saving investment promotion plan in May for 12 industries, including food and beverage and accommodation, which will include productivity improvement targets, and we will establish and implement a nationwide support system to dispatch experts to the sites of small and medium-sized enterprises. In order to strengthen the management base of small and medium-sized enterprises, we will formulate a new policy package for business succession and M&A (mergers and acquisitions) by June and vigorously implement it.

We must continue to address rising prices even while we wait for the effects of wage increases to become apparent. In order to respond to the soaring prices of food and energy, we have already begun providing low-income households with an additional 30,000 yen per household and 20,000 yen per child.

Regarding local grants for priority support to help local governments respond to rising prices, the first round of grants was recently decided for 47 prefectures and 1,250 cities, wards, towns, and villages. We will effectively deliver support tailored to the actual conditions of each region, including measures that take into account the rising prices of food items such as energy and rice, to the public.

As for gasoline, we will continue to provide support through the drastic change mitigation project to ensure that the national average retail price remains at around 185 yen per liter. With regard to the so-called "abolition of the provisional gasoline tax rate," I understand that sincere inter-party discussions will be accelerated toward the necessary legal reform in order to resolve various issues, such as securing stable financial resources.

Rice prices remain high, but in response, we have decided to utilize the government's rice reserves. Recently, the first bidding was held, and deliveries of 140,000 tons have begun to collection agents such as Zennoh, and the second bidding was held last week. It is expected that the rising rice prices will stabilize through stable supplies to consumers. We will closely monitor developments and, if necessary, will take further action without hesitation.

Regarding the review of the so-called "1.03 million yen wall," the enactment of the FY2025 budget and tax law has decided to add to the basic deduction, which will apply to just over 80% of taxpayers. Combined with the initial government proposal, this will realize an income tax reduction of 20,000 to 40,000 yen per person for approximately 56 million people. In light of rising prices, etc., we will continue to consider raising the amount of deductions, etc. in a timely manner.

This will be the year when child and child-rearing support will be fully implemented. Following the expansion of the 120,000 yen per year child allowance to high school students, from April, the benefit rate will be increased to 100% of take-home pay when both parents take childcare leave. Up to 700,000 people are expected to receive the benefit. If you choose to work part-time to raise children, you will also be able to receive benefits equivalent to 10% of your wages.

In order to open up the future for the younger generation and realize a "society that respects human resources" -- the Japanese character for "takara" (treasure) is used, but in order to realize a "society that respects human resources," we have abolished the income requirement for the so-called "free high school education" system, which provides 118,800 yen per year as a preliminary measure. 870,000 people will be eligible for this expansion. We expect that from fiscal year 2025, approximately 3.3 million high school students nationwide will be eligible. Going forward, we will raise the support amount for private high school students to 457,000 yen per year from fiscal year 2026, setting out the outline of the system in the Basic Policy for Economic and Fiscal Management and Reform 2025, and will flesh it out during the fiscal year 2026 budget formulation process.

With regard to the so-called "free school lunches," we will first focus on elementary schools with approximately 6 million students nationwide.

As for responding to rising prices, we will continue to implement measures seamlessly in accordance with the situation.

In order to allow young people, young people, and women to fully realize their potential, we will strongly support, for example, young people attending universities and technical colleges all over the country taking on the challenge of starting up businesses, and efforts to significantly increase regular employment for women using approximately 100 billion yen in career advancement subsidies. We will promote the creation of an environment in which the public can realize their potential, and work to create regions that are chosen by young people and women.

Technological innovation, such as the emergence of artificial intelligence (AI), is advancing, and the nature of work is changing dramatically. In this environment, we will provide support of approximately 100 billion yen to those who are taking on new job challenges and undertaking reskilling and reeducation. We will implement system reforms, such as establishing an education and training leave benefit that will pay a certain percentage of wages to those who take leave to receive education and training, and provide detailed support to people in various situations.

I hope that people will feel more attached to their hometowns, so I will vigorously advance "Regional Revitalization 2.0" -- I say "Regional Revitalization 2.0" because I want to make it something completely new, not just 1.0 -- as part of the "Remodeling of the Japanese Archipelago in the Reiwa Era." I will draw out new encounters and realizations that young people and women will find fun, as well as the dreams and possibilities that arise from them. I will say this again: I will create regions that young people and women will choose.

Regarding the Regional Revitalization Grant, we will adopt new projects worth approximately 60 billion yen out of the 100 billion yen in the FY2024 supplementary budget. The FY2025 budget also includes 200 billion yen, double the initial budget, and we will implement this quickly and effectively to strongly support the unique initiatives of local regions.

Last month, I visited Fukushima, Nagano, and other local revitalization sites. There, I was reminded of the potential of local regions and renewed my determination to strongly promote the Regional Revitalization Innovation Initiative.

In Fukushima Prefecture, I visited the research and development center of a robot manufacturing company. I was deeply impressed by the enthusiasm of the managers who are working to create innovation. We will strongly support efforts to create innovation in local areas through collaboration between various entities, such as technical colleges that have strengths in AI and robotics technology.

I also visited Ina City, Nagano Prefecture, where I realized that by utilizing new technologies such as online medical vehicles and drones to assist with shopping, our actual lives have become much more convenient. We will actively and effectively work to improve the living environment in rural areas by utilizing digital and new technologies.

In order to strengthen our country's growth and earning power for the future, we will provide more than 10 trillion yen in public support for the AI and semiconductor fields by fiscal 2030, and will draw out more than 50 trillion yen in public and private investment over 10 years. In order to strongly promote domestic investment in advanced semiconductors and AI data centers, which hold the key to future growth, and to steadily achieve this goal, we will implement support of 1.9 trillion yen in the fiscal 2024 supplementary budget and the fiscal 2025 budget. Our country was once known as the semiconductor kingdom. Now that our country is in the situation you know, we will challenge the international competition to be at the forefront of the world in the new era.

We will launch the "Regional Revitalization Support System" in which Kasumigaseki officials will use their experience to support municipalities. It can be in Tokyo, in the regions, or online, so it is a system that allows for a variety of flexible support. Although the application period was only two weeks, about 200 municipalities from Hokkaido to Okinawa applied. As for national government officials, 250 people applied, from young to senior officials, from almost all ministries and agencies. As the first step, officials appointed as "Regional Revitalization Support Officers" will provide thorough, polite, and thorough, kind support to 60 municipalities across the country. This is not something that only government agencies can do. I would like private companies to expand such efforts. I would like to make the circle of people who support local areas even larger and stronger. I would like to create a society that makes full use of technology such as teleworking and respects people as a "treasure."

Today is April 1st, and the Osaka Expo will finally open on April 13th. Thank you for your support. I hope that people of all ages, both domestic and international, will come to the Expo. I was a junior high school student in Tottori when the last Osaka Expo was held in 1970. I think that the Osaka Expo leaves a strong impression on people in their 60s and 70s. I sincerely hope that people from all over the world, from seniors to young people, and not just from Japan, will come to the Expo, find new hope for Japan, discover a "fun Japan," and not only come to Yumeshima in Osaka, but that this trend will spread to people who want to go to Hokkaido, Okinawa, or Hokuriku. Thank you for your support.

Regarding the additional tariffs on automobiles and other products announced by the U.S. last month, Japan is the largest investor in the U.S. Taking this into consideration, we will continue to strongly urge the U.S. to exclude Japan from the list.

In addition, we will thoroughly examine the impact on domestic industries and employment, and take all necessary measures. If the U.S. measures are implemented, we will immediately set up special consultation desks in approximately 1,000 locations nationwide as a short-term response. These special consultation desks will provide thorough and detailed support to small and medium-sized enterprises and small businesses with their concerns, worries, and inquiries. It is natural to expect that business activities will be affected, and we will do everything we can to provide support in terms of financing and fundraising. With a view to strongly supporting efforts to strengthen competitiveness through improved productivity and to expand sales through the development of new businesses, the government will personally visit the relevant factories and companies to grasp the impact, and will accelerate support by rolling out the "Mikata Project" nationwide, which will provide management advice and introduce various support measures -- a "Mikata Project" that will show people that we are on their side.

We will coordinate with the ruling party as soon as possible regarding the specific content of the response measures to these additional tariffs by the United States.

As mentioned above, we will effectively utilize the FY2025 budget that was enacted yesterday to sincerely address the lives of the people and respond flexibly to social and economic trends, including prices, seamlessly. We sincerely ask for the understanding and cooperation of the people.

Thank you very much for your cooperation.

That's all. Thank you very much.

QUESTION & ANSWER SESSION

Cabinet Public Relations Secretary: Now, we will be taking questions from everyone. If you are called on, please state your company name and name at the microphone on the stand nearby and then ask one question each.

There is a schedule after this, so please cooperate with the progress.

First, we will take a question from the coordinating company. Mr. Hiramoto from Nippon Television.

Reporter: Thank you for your hard work, Prime Minister. This is Hiramoto from Nippon Television.

The budget has been passed, but I think there are many issues both at home and abroad. Earlier, at the beginning, new measures were announced to combat rising prices. There was also support aimed at raising gasoline to 185 yen, and new rice measures. You mentioned measures to combat rising food prices, but would you like to hear more specifically if you are considering a new measure to cut the consumption tax limited to food items?

You also mentioned the Trump tariffs. They are expected to go into effect in two days. There were also new measures such as counter support and financial support. There was talk of seeking an exemption from this measure, but do you intend to lobby President Trump directly?

Prime Minister ISHIBA: You asked whether it would be possible to reduce the consumption tax on food products. I have answered this question many times in the Diet, but the consumption tax is an important source of revenue to support social security for all generations. The entire amount of this revenue is used to pay social security benefits. What would we do if this revenue were to be reduced? There have been examples of reductions in other countries, and in the G7 countries where this was implemented, there have been temporary reductions in some items, but the consumption tax in those countries is currently set at 10% in Japan, but it is set at a higher rate. For example, the consumption tax in the UK is 20%, France is 20%, Germany is 19%, and Italy is 22%. We must consider such things. We must respond by considering such things, and I do not think that reducing the tax rate is appropriate. How does our consumption tax rate compare to other countries? And the entire amount is used for social security. What would we do if this revenue were to be reduced? I believe that the government must consider this.

As for what we will do about the U.S. tariff measures, the whole government is working on this day and night, on weekends and holidays, of course. The whole government is working on this, including Minister of Economy, Trade and Industry Muto, Minister of Foreign Affairs Iwatake, the Ministry of Foreign Affairs, and the Ministry of Agriculture, Forestry and Fisheries. We are negotiating with various people in charge there. If necessary, I have no problem with going there myself, but first the people in charge will build things up properly. Then, once the whole picture is clear, if it is judged appropriate for me to go, I believe I should do so without hesitation.

Cabinet Public Relations Secretary: Next, we have Mr. Kaiya from the organizing committee, Yomiuri Shimbun.

Reporter: This is Kaiya from the Yomiuri Shimbun.

Prime Minister, you have praised the budget deliberations as a "deliberative Diet," but during this time, the Cabinet's approval rating has fallen, and some within the LDP have questioned your ability to govern. Prime Minister, how do you perceive the cause of the loss of support and trust from the people and the party, and what do you think is necessary to restore it?

Also, the situation of a minority ruling party that is unable to promote policies can only be resolved by dissolving the House of Representatives or forming a new coalition. Are you considering holding simultaneous House of Representatives and House of Councilors elections or asking some opposition parties to form a coalition as options? Or do you think there is no problem with remaining a minority ruling party? Please also let us know your views.

Prime Minister ISHIBA: The fact that my approval rating is declining is entirely my responsibility. I accept this sincerely and humbly, and as I said in the press conference, there is nothing else to do but to work hard to restore trust after deep reflection. I have absolutely no intention of blaming others, and I believe that we need to accept this sincerely and humbly.

Furthermore, we are not at all considering dissolving the Diet, holding simultaneous elections for both the House of Representatives and the House of Councilors, or reorganizing the coalition. Even though we remain a minority ruling party, we were able to pass this budget thanks to the sincere efforts of many people. I do not intend to say that this is everything, but the results were achieved by the efforts of many people, and the budget was passed within the fiscal year. Under these circumstances, from today onwards, we will work with renewed determination, humility, sincerity, and all that is left for me at this point.

Cabinet Public Relations Secretary: Due to time constraints, we have one or two more questions. We will be taking questions from those other than the coordinating companies, but please keep your questions brief. Please raise your hand.

Mr. Miki from Nikkei.

Reporter: I'm Miki from the Nihon Keizai Shimbun.

Thank you very much. I'd like to ask about regional revitalization. As mentioned in your opening remarks, with the budget now in place, I believe you will be focusing on regional revitalization, which you have set as your goal. Looking at the current global situation, I think it will be very important to combine regional revitalization with these new fields in order to increase our international competitiveness. What kind of attitude will you take in the future? Also, please tell us if regional revitalization is the first specific measure you would like to undertake.

Prime Minister ISHIBA: As you pointed out, I think that the keywords are investment in the fields of AI and semiconductors, investment in GX, and watt-bit collaboration (effective collaboration between electricity and communications).

The potential of local regions, of course there are many local regions in Tokyo, such as agriculture, forestry, and fisheries, medical care, nursing care, and disaster prevention. There are countless areas where local regions have potential. In response to these, I would like to maximize the potential of local regions by combining investment in the fields of AI and semiconductors, investment in GX, and watt-bit collaboration.

And as I mentioned earlier, we are providing support that accompanies local regions, and many people from Kasumigaseki and Nagatacho are saying that they want to go to local regions. In this regard, I would like to provide various types of support, as I have just mentioned, concretely, strongly, and swiftly.

Cabinet Public Relations Secretary: We have one last question, from Mr. Yokochi of CBC Television.

Reporter: My name is Yokochi from CBC TV.

In relation to the Disaster Prevention Agency, which the Prime Minister mentioned at the beginning, I would like to ask how you plan to tackle public-private partnerships and wide-area partnerships including local governments. In the Noto Peninsula earthquake and heavy rains, everyone worked hard, probably due to the peninsula's topography, but it has also been pointed out that there were challenges with this partnership.

Regarding the massive earthquake in the Nankai Trough that was summarized by the government's working group and review committee yesterday, it is assumed that the areas that will be hit by a seismic intensity of 6 or more and a tsunami of 3 meters or more will reach 30% of the whole of Japan, so I think that partnerships will become even more of an issue. So, as the command center for disaster prevention, I would like to ask how you plan to tackle this partnership as the Disaster Prevention Agency.

Prime Minister ISHIBA: The Disaster Management Agency aims to be able to respond in the same way no matter what kind of disaster occurs anywhere in the country, from Hokkaido to Kyushu and Okinawa. We cannot accept it because it is a geographically difficult place or because it is financially difficult. No matter where a disaster occurs in the country, we must minimize the damage.

I showed the example of Ofunato on the panel earlier, but in that case, the local government stockpiles supplies, and volunteers also carry out various activities. It is most important that these activities are carried out in an organized and planned manner, not on an ad hoc basis, and we must properly establish this system. In Italy and Taiwan, the so-called TKB, container-type toilets, food trucks, beds, tents, etc., can be used in a very short time, such as within 48 hours. The reason is that stockpiles are properly prepared on a daily basis. Volunteers are organized, and there is a thorough system in place that says that if something happens here, someone with the right skills will go. Earlier, you mentioned the role of a control tower, and I think that the Disaster Prevention Agency should play that role.

Of course, we must improve the accuracy of various predictions to prevent disasters in advance. As I explained yesterday with the example of the Nankai Trough earthquake, damage can be greatly reduced by evacuating quickly and accurately. However, this cannot be achieved by suddenly going to the scene. It is a matter of how to do this on a regular basis. I believe that the role that the Disaster Prevention Agency should play is very large.

Cabinet Public Relations Secretary: As we have other plans, we will now conclude the press conference. To those who have raised their hands, please send one question to the person in charge by email by the end of today, and we will respond in writing at a later date.
Thank you for your cooperation.

Original Japanese Text Source: Official Website of the Prime Minister of Japan and His Cabinet

Page Created: 4/8/25

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