This was reported by the Japanese media on Friday. Including municipal and private sector spending, the package will total 71.6 trillion yen.
Prime Minister Fumio Kishida, who is fighting declining polls, wanted to present the package the same day. He said he intended to use the money primarily to fund subsidies for household and business electricity bills.
The government is likely to fund massive spending with more government bonds, apart from the already high government debt. Rising inflation is hitting Japan at a time when the world’s third-largest economy is recovering more slowly than other major economies.
The situation is exacerbated by the rapid weakening of the yen as it increases import costs for the country with few natural resources. According to experts, the yen is also mainly weighed down by the monetary policy of the Bank of Japan, which, unlike many other central banks, does not fight inflation in the country.
Although this is significantly lower than in many other countries, it is relatively high by Japanese standards. The Bank of Japan was scheduled to announce its future monetary policy stance on Friday. Market circles expected the reins of monetary policy to be loosened drastically.
(SDA)