The total amount of financial support for measures to support the Japanese economy, which will be agreed upon during the day, will be in the region of 17 trillion yen ($113 billion), Prime Minister Fumio Kishida said during a meeting of the leadership of the ruling Liberal Democratic Party of Japan.
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Of this, 13.1 trillion yen ($86.6 billion) as part of the supplementary budget package will be used to support the population, including payments to low-income families in the amount of 70 thousand yen ($465.5). Another 3 trillion (about 20 billion dollars) will be allocated for measures to temporarily reduce the tax burden.
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“Given the current situation, when the increase in wages does not keep pace with the rise in prices, it is necessary to provide support to the population as a temporary measure, and we have developed effective measures for this. We intend to implement them for the population as quickly as possible,” the head of the Japanese government emphasized during meeting, fragments of which were broadcast by NHK.
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Japanese Prime Minister Fumio Kishida, during a press conference in late September, defined the next three years as a “period of transformation” from an economy based on cost reduction to a model that will focus on labor market growth, higher wages and consumption levels, stronger digitalization and support for startups. He also instructed the government to develop a package of economic measures by the end of October.
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According to the head of the Japanese government, the measures will be based on five areas: measures against rising prices; sustainable wage increases and regional development; promotion of domestic investment; measures to combat population decline, as well as population safety, including the prevention of emergency situations and mitigation of their negative consequences.
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Japanese media previously reported that the ruling party was calling for up to 20 trillion yen ($134.4 billion) in an additional budget package to finance economic support measures.
