Fashion
Japan’s cabinet approves $316-bn stimulus package to bolster economy
The package includes 17.7 trillion yen of spending, 2.7 trillion yen in tax breaks and 900 billion yen in special account spending.
Inflation in the country has consistently run above the central bank’s target. The headline inflation figure for October rose to 3 per cent from 2.9 per cent, staying above the Bank of Japan’s 2-per cent target for 43 months in a row, while core inflation (minus fresh food) came in at 3 per cent. Finance Minister Satsuki Katayama has also cautioned of yen volatility.
Japan’s cabinet has cleared a $136-billion stimulus package to boost the economy, assuage inflation-hit masses and strengthen defence and diplomatic capabilities.
It would expand local government grants, and provide subsidies for electricity and gas bills.
The support measures will begin in January, amounting to 7,000 yen for a standard household over three months.
Taxes on gasoline will be eliminated.
The cabinet also announced it would expand local government grants, and provide subsidies for electricity and gas bills. The support measures will begin in January, amounting to about 7,000 yen for a standard household over a three-month period, domestic media outlets reported. Taxes on gasoline will be eliminated.
There is also a plan to set up a 10-year fund to enhance the country’s shipbuilding capabilities, and enact measures to raise defence spending to 2 per cent of its gross domestic product by fiscal 2026-27.
The government will compile a supplementary budget bill to fund these measures, and plans to pass it by year-end with help from the opposition.
Prime Minister Sanae Takaichi told reporters the government will use its revenue to fund the package, and any shortfall would be covered via issuing government bonds.
Fibre2Fashion News Desk (DS)