(MENAFN) Japan’s newly appointed prime minister on Friday vowed to implement an “aggressive” fiscal strategy aimed at stimulating growth and enhancing defense expenditure, while describing China as an "important neighbor."

In her inaugural policy address to parliament, Sanae Takaichi presented her economic blueprint against the backdrop of global financial uncertainty and ongoing inflationary challenges.

"I will turn (people's) anxieties about the present and future into hope and build a strong economy," she stated, according to a news agency.

To address inflation, Takaichi revealed intentions to eliminate the temporary gasoline tax rate, which has been in place since 1974, during the current parliamentary session concluding on Dec. 17.

She also plans to increase the nontaxable income limit from 1.03 million yen ($6,700) to 1.6 million yen this year.

Her policy speech follows her election on Tuesday, making Takaichi the first woman to serve as Japan’s prime minister.

Additionally, Takaichi announced that Japan will elevate defense spending to 2% of GDP by March, accelerating the target by two years.

Japan, the world’s fourth-largest economy, had previously projected defense spending of approximately $70 billion for the current fiscal year, ending next March, which equates to 1.8% of GDP.

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