Japan PM Announces $113 Billion Economic Stimulus

Tokyo, (APP – UrduPoint / Pakistan Point News – 2nd Nov, 2023) Japanese Prime Minister Fumio Kishida announced on Thursday a stimulus package worth $113 billion aimed at easing the pain from inflation.

Voters in the world‘s third-largest economy have been squeezed by rising prices since the Ukraine war while Kishida’s poll ratings are at their lowest since taking office in 2021.

“This package… is expected to total in the lower range of the 17 trillion Yen ($113.2 billion) level,” Kishida said in a government meeting with ruling party officials.

“The most important pillar of these comprehensive economic measures is to strengthen supply capacity to enhance the earning power of companies,” Kishida said.

The government was expected to give more details later, but media reports said the progamme was worth 37.4 trillion yen when including private sector spending.

It involves income and residential tax reductions of 40,000 yen ($266) per person, and 70,000 yen cash handouts to low-income households, according to public broadcaster NHK and other local media.

Fuel subsidies will also be extended and there will be funds to promote investments in high-tech areas including the chip and space industries.

The package will likely add to Japan‘s debts, with the country already having, at 261 percent in 2022, one of the world‘s highest ratios of liabilities to gross domestic product.

The government has already injected hundreds of billions of Dollars into the economy over the past three years to support the recovery from the Covid-19 pandemic.

The stimulus will be submitted to the parliament for approval.