Politics & Government

Japanese Govt Plans ¥17 Trillion Stimulus Package, with Big Budgets for Tax Cuts, Space Development

Yomiuri Shimbun file photo
Prime Minister Fumio Kishida explains an outline of his economic stimulus package at the Prime Minister’s Office on Sept. 25.

The Yomiuri Shimbun

15:18 JST, November 1, 2023

The government and ruling parties have begun discussing how much to spend on an economic stimulus package, with current projections at ¥17 trillion. Prime Minister Fumio Kishida has vowed to implement the tax-cut-centered package in June next year.

Kishida has already announced tax cuts of ¥40,000 per person, and the Cabinet aims to decide on the package as early as Thursday.

A revised draft of the economic stimulus package, presented by the government to the ruling parties on Tuesday, included ¥30,000 in income tax cuts and ¥10,000 in residential tax cuts per person. The draft suggests a cost of some ¥3.5 trillion for the cuts, which are described as direct aid to disposable income.

Each low-income household exempt from residential taxes will also receive a ¥70,000 payout.

As for space development, the draft includes a 10-year fund for the Japan Aerospace Exploration Agency, with a provision that it be quickly topped up with ¥1 trillion.

The fund is intended to help companies and universities develop and commercialize advanced technologies for space.