The Japanese government has approved a stimulus package of 21.3 trillion yen to support the economy and households affected by inflation.

The government in Tokyo has approved a stimulus package worth 21.3 trillion yen (approximately 135.5 billion dollars) under the leadership of Prime Minister Sanae Takaichi, aimed at reviving the sluggish economy and supporting households affected by inflation. The program focuses on three directions: combating rising prices, strengthening the economy, and enhancing defense and diplomatic capabilities, being the largest stimulus package since the Covid-19 pandemic. The measures include the extension of grants for local administrations and subsidies for electricity and gas bills, which will come into effect in January, providing approximately 7,000 yen per household over three months. Additionally, the government will temporarily eliminate the gasoline tax and create a 10-year fund for the development of the shipbuilding industry, aiming to increase defense spending to 2% of GDP by 2027. The executive will quickly draft an additional budget to finance the program, intending to adopt it before the end of the year, with the support of opposition parties. Prime Minister Takaichi mentioned that the package will be primarily funded from government revenues, and the difference will be covered by issuing government bonds, in a smaller volume than last year.