Japan's economic policy landscape is undergoing significant changes as Prime Minister Takaichi's administration signals major shifts in fiscal management, budget priorities, and economic governance. These developments, emerging from parliamentary debates and advisory council meetings this week, could have far-reaching implications for businesses and residents in Japan. According to NHK, Prime Minister Takaichi is considering a fundamental revision to how Japan measures fiscal health. The government currently evaluates its primary balance—the difference between tax revenues and expenditures excluding debt servicing—on an annual basis with targets for achieving a surplus. The Prime Minister now indicates this approach may shift to a multi-year framework, moving away from strict single-year assessments. This represents a significant departure from Japan's traditional fiscal discipline approach and suggests a more flexible stance on government spending. The timing coincides with Takaichi's first Budget Committee sessions since taking office, where economic policy dominated discussions. The Prime Minister also announced the appointment of three new private-sector members to the Council on Economic and Fiscal Policy, including former Bank of Japan Vice Governor Masazumi Wakatabe. Wakatabe is notably associated with proactive fiscal policy positions, signaling a potential shift toward more expansionary economic policies. This appointment suggests the administration may prioritize economic growth and stimulus measures over strict fiscal consolidation. However, not all government bodies support increased spending. The Fiscal System Council, an advisory body to the Finance Minister, met on November 7 to discuss next year's budget and called for a comprehensive review of small and medium-sized enterprise subsidies. According to NHK, council members expressed concerns about the proliferation of overlapping subsidy programs, arguing that the current system lacks coherence and efficiency. For foreign entrepreneurs and business owners operating SMEs in Japan, this could signal upcoming changes to available support programs, though specific reforms have not yet been detailed. The Finance Ministry is also engaged in sensitive negotiations over medical fee revisions, which affect healthcare costs throughout Japan. Finance Minister Katayama stated at a post-cabinet meeting press conference that his ministry would engage in data-driven discussions with the Ministry of Health, Labour and Welfare regarding next year's medical service fee schedule. The ministry is examining differences between hospital and clinic compensation structures. Any changes to medical fees directly impact healthcare costs for all residents, including foreign nationals, though the direction of potential adjustments remains unclear. Beyond fiscal policy, Prime Minister Takaichi instructed relevant cabinet ministers to begin examining amendments to the Economic Security Promotion Act, enacted just three years ago. NHK reports this review responds to rapidly changing international circumstances. While details remain vague, economic security legislation typically addresses supply chain resilience, critical technology protection, and infrastructure security. Foreign businesses, particularly those in technology sectors or with international supply chains, should monitor these developments as amendments could introduce new compliance requirements or operational restrictions. For expats living and working in Japan, these policy shifts create both uncertainty and potential opportunities. A more flexible fiscal approach might sustain government services and infrastructure investment, but could also affect Japan's long-term economic stability and tax policies. Changes to SME subsidies could impact employment at smaller companies, where many foreign residents work. Healthcare fee revisions will directly affect out-of-pocket medical expenses for those not fully covered by insurance. The appointment of pro-stimulus advisors and reconsideration of fiscal targets suggests Japan may be entering a period of more activist economic policy. While this could support near-term economic growth and employment, it represents a significant philosophical shift for a country long concerned with its substantial public debt. Foreign residents should stay informed as these policy debates translate into concrete budget decisions in the coming months, particularly regarding healthcare costs, business subsidies, and potential economic security regulations that may affect their work and daily lives.