Prime Minister Takaichi unveils plan to exempt 17 growth sectors—including AI and semiconductors—from the three-year budget financing limit to support long-term corporate investments.

At a meeting of the Council on Economic and Fiscal Policy on Friday, Prime Minister Sanae Takaichi announced a new investment quota for 17 growth areas, including artificial intelligence and semiconductors, and exempted these sectors from the rule limiting financing for related project funds to three years in principle.

The government will allow budget requests outside standard three-year constraints and aims to secure necessary funds by reviewing budget compilation procedures. Private-sector council members requested that the quota also cover measures to support startups and enhance small businesses' earning power.

Council members emphasized the need to allocate budgets to the 17 areas over multiple years, as growth investments tend to take time to produce results. Separately, Takaichi instructed relevant ministers to consider setting a target rate for reducing insurance premiums for working generations and advance reform implementation in the current fiscal year that ends next March.