Japan's Fiscal Health in Jeopardy After Consumption Tax Cut

Japanese Prime Minister Sanae Takaichi's decision to cut the country's consumption tax on food items has left many citizens worried about Japan's fiscal health. A recent poll conducted by Kyodo News found that around 71% of respondents were concerned about the country's financial situation.

The poll, which was conducted over the weekend and involved a telephone survey of nearly half a million people, also showed that support for Takaichi's Cabinet has been declining. The approval rate fell to 50.2%, its lowest level since she took office last year.

Takaichi has pushed for aggressive fiscal spending to boost key sectors and rev up the economy, but this move has led to higher Japanese government bond yields and a weakened yen. Japan's fiscal health is currently ranked as the worst among advanced economies.