Japan's government is preparing to introduce an $87 billion stimulus package aimed at supporting low-income households and offsetting rising costs. The plan will be funded through a supplementary budget of 13.5 trillion yen. This package comes as part of broader efforts to ease financial pressures due to higher fuel and utility prices.
One of the key components of the $87 billion stimulus package will be direct financial support for low-income families. These households, which are exempt from residential taxes, will receive 30,000 yen ($193). Families with children will also get 20,000 yen per child to help with increasing living costs.
To help households deal with the rising costs of utilities, the government is considering reintroducing subsidies for electricity and gas. These subsidies were discontinued last month but may be reinstated for three months starting in January. This is expected to ease the financial burden on families facing higher energy costs.
While energy subsidies are on the table, the Japanese government is planning to phase out gasoline fuel subsidies that were originally scheduled to end in December. This gradual phase-out is a key part of managing Japan’s fiscal budget while still offering support through the $87 billion stimulus package.
Prime Minister Shigeru Ishiba is set to finalize the stimulus package on November 22. However, the details may shift depending on discussions with opposition parties. The ruling coalition, led by the Liberal Democratic Party (LDP) and Komeito, holds a fragile majority, which could impact the outcome.
Rising inflation and energy costs have placed considerable strain on Japanese households. The government’s stimulus package aims to provide timely relief and ensure economic stability for those most affected. Swift action from the government is seen as crucial in maintaining public confidence during this period of financial uncertainty.
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Japan is set to introduce a stimulus package worth $87 billion to support low-income households and ease rising costs.
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