Japan to Allocate Over $112 Billion to Address Inflation Challenges – Draft By Reuters

By Takaya Yamaguchi

TOKYO (Reuters) – The Japanese government is exploring a spending package exceeding 17 trillion yen (approximately $112 billion) to mitigate the economic impact of rising inflation, according to a draft of the plan reviewed by Reuters.

To finance a portion of this spending, the government intends to prepare a supplementary budget for the current fiscal year, estimated at around 13.1 trillion yen, as stated in the draft.

Earlier reports by the Asahi Shimbun indicated that the proposed measures will likely total around 17 trillion yen.

Prime Minister Fumio Kishida expressed last week that the government aims to finalize the package on November 2, which will include temporary reductions in income and residential taxes, as well as subsidies to help offset gasoline and utility costs.