Japan's fiscal policy is shifting focus on consumption stimulus. Recent discussions center on implementing a sales tax reduction to boost economic activity, though specific funding mechanisms remain under review. The government is exploring budget reallocation by potentially cutting back on certain subsidies while simultaneously seeking to reduce reliance on bond issuance for financing. This multi-pronged approach reflects broader efforts to balance stimulative measures with fiscal sustainability—a dynamic that often influences broader investment flows and macroeconomic sentiment across asset classes.