Japanese Prime Minister Sanae Takaichi, who took office in October, has unveiled a $135 billion stimulus package including cash handouts and energy subsidies to boost growth and address inflation, following her predecessor's ouster amid public discontent over rising living costs.

Experts doubt the spending will significantly accelerate growth, arguing it fails to address Japan's structural challenges like an aging population and misallocated capital, while also risking further strain on public finances.

Margarita Estévez-Abe, associate professor of political science and expert on Japan, thinks most of the items on Takaichi's budget will do little to accelerate growth. 

She argues more spending “is the wrong cure” for Japan's woes, which she says were the result of “structural challenges” such as an aging and shrinking population, inadequate investment in public education and misallocation of capital to inefficient sectors.

“I don't think Takaichi's budget, or anything she has stated so far, addresses any of the core underlying factors,” Estévez-Abe tells DW.

In the Agence France Presse article “China, inflation could pop Japan PM's bubble,” Estévez-Abe says Takaichi's appointment “was a very risky choice for the China-Japan relationship at a very delicate economic moment for Japan. Starting a fight against someone stronger with no prior planning is no leadership.”