Japan’s Cabinet has approved a new economic stimulus package worth about 21.3 trillion yen, or roughly 135 billion dollars.
The package has three pillars: measures to address rising prices, realizing a strong economy, and strengthening the country’s defense and diplomatic capabilities.
One item related to the cost of living is enhanced support for municipalities. Local governments will be allowed to implement their own measures to tackle rising food prices.
Subsidies for electricity and gas bills will resume. Households will receive on average about 45 dollars from January to March next year.
A one-time cash handout is planned for parents to support child-rearing amid soaring prices. It will be about 130 dollars per child.
The package contains money for improving Japan’s shipbuilding capabilities. The government is planning to propose the establishment of a 10-year fund.
Japan has set a goal of raising defense and related expenditures to 2 percent of the country’s GDP. The package contains measures to accelerate that spending, aiming to hit the target by the end of the current fiscal year.
The government is expected to spend about 115 billion dollars for the package, which will be drawn from the general account. That’s around 25 billion dollars higher than in the last fiscal year.
The overall scale of the stimulus measures is expected to be about 135 billion dollars when tax reductions are included, with the primary cut being the abolition of a provisional gas tax.
Japanese Prime Minister Takaichi Sanae said: “With this economic stimulus package, the government will prioritize quickly delivering measures against rising prices. We will also fund crisis management and growth initiatives. The government will implement strategic fiscal stimulus to protect people’s lives and create a strong economy.”
Takaichi added that her Cabinet will compile a draft supplementary budget and enact it as soon as possible.
AloJapan.com