Blitz Bureau
NEW DELHI: Japanese Prime Minister Sanae Takaichi’s party is likely to score a landslide victory in next week’s lower house election, a survey by the Asahi newspaper showed, heightening the chance the country will continue to pursue big spending and tax cuts.
A strong showing on February 8 election would solidify Takaichi’s grip on her party and give her a mandate for her expansionary fiscal policy.
Takaichi’s Liberal Democratic Party is likely to well exceed a majority of 233 seats out of 465 seats up for grabs in the lower house, according to Asahi’s poll released. That would be an increase from 198 seats now.
The Japanese government bond yields rose on February 2 as investors priced in the chance Takaichi would secure an electoral mandate to push through her “proactive” fiscal policy focused on bigger spending and tax cuts.
The largest opposition party, the Centrist Reform Alliance, is struggling and could lose half its 167 seats, the Asahi said.Takaichi’s ruling coalition currently holds a slim majority in the powerful lower house but has a minority in the upper house.
The premier dissolved Parliament last month and called a snap election on February 8 seeking a mandate for her push to reflate the economy with expansionary fiscal policy.
Japan suffered a broad market rout last month after Takaichi pledged to suspend an 8% levy on food sales for two years, reviving investor concerns about fiscal discipline in a country with public debt more than twice the size of its economy.