LDP’s fiscal hawks gain strength as Kishida seeks balance

key takeaways

• In the Kishida government’s draft basic policy, it retained a longstanding primary fiscal surplus target.
• Prime Minister Kishida Fumio has sought to find a balance between growth policies and fiscal consolidation, as fiscal hawks and doves in the LDP jockey for influence.
• While fiscal hawks may be gaining the upper hand, deficit spending will likely continue – as will the fight within the LDP.