By Leika Kihara

TOKYO (Reuters) – Japan’s veteran lawmaker Sanae Takaichi will propose a mix of income tax cuts and cash payouts to households in her campaign pledge for the ruling party’s leadership race, the Nikkei newspaper reported on Friday.

In the pledge, Takaichi will also call for gradually lowering the ratio of government debt to gross domestic product, the Nikkei reported.

Seen by markets as a fiscal dove, Takaichi said on Thursday she would run in the ruling Liberal Democratic Party leadership race on October 4 to replace outgoing Prime Minister Shigeru Ishiba.

Takaichi, who hopes to become Japan’s first female prime minister, is seen as one of the frontrunners, along with Agriculture, Forestry and Fisheries Minister Shinjiro Koizumi.

Takaichi said she would hold a press co

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