Tokyo, Oct. 28 (BNA) The government of Japanese Prime Minister Fumio Kishida approved on Friday a massive economic package that includes government funding of about 29 trillion yen (200 billion dollars) to ease the cost burden from rising utilities and food prices. the prices.
Official party and cabinet approval is expected later in the day after the morning economic policy meeting. Kishida was scheduled to hold a press conference in the evening.
Inflation has risen in Japan along with rising prices globally. The yen’s weakness against the dollar has inflated import costs, according to the Associated Press.
“We will make sure that measures are introduced to everyone and do everything we can so that people feel supported in their daily lives,” Kishida said at the morning meeting.
The stimulus is another indication that Japan will stick to using fiscal measures, or government spending, to address current economic challenges.
While central banks around the world have been aggressively raising interest rates to try to tame decades of high inflation, Japan’s inflation rate is relatively moderate at 3% and the biggest fear is that the economy will stall, not overheat.
The Bank of Japan, which has kept its record rate at 0.1% since 2016, maintained its long-lost monetary policy at its policy-making meeting that concluded on Friday.
Kishida said the total size of the package, including private sector financing and financial measures, is expected to reach 71.6 trillion yen ($490 trillion). Fiscal spending will be 39 trillion yen ($270 billion).
The package includes about 45,000 yen ($300) in support of household electricity and gas bills and 100,000 yen ($680) coupons for women who are pregnant or raising children.
The 29 trillion yen ($200 billion) spending package will be part of a supplementary budget that has yet to be approved by parliament.
Kishida pledged to compile, submit and approve the budget plan as soon as possible.
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