Kishida: Japan’s Economic Measures to be in Lower ¥17 Tril. Range; ‘Temporary Support for Nation’s Disposable Income’

The Yomiuri Shimbun

20:29 JST, November 2, 2023

Prime Minister Fumio Kishida said Thursday the scale of the economic measures that were approved by the Cabinet on the day will be in the lower ¥17 trillion range, mainly consisting of ¥3.5 trillion in income and other tax cuts, and a fiscal 2023 supplementary budget proposal, which will be ¥13.1 trillion in the government’s general account.

At a press conference Thursday evening, Kishida stressed, “The government will take all possible measures to raise the people’s disposable income.”

The prime minister also said that ahead of next year’s shunto spring wage negotiations, he would spearhead efforts to get companies to implement larger wage hikes than this year’s.

The full scale of economic measures, including private-sector investment, is expected to be ¥37.4 trillion.

In the morning, prior to the Cabinet giving its approval, Kishida explained the package at a policy meeting between the government and the ruling parties at the Prime Minister’s Office.

The prime minister explained that the measures, which include fixed-amount cuts in income and other taxes, “will support the people’s disposable income as a temporary measure to make sure the country does not return to deflation.”

The supplementary budget includes ¥2.7 trillion for measures to counter high prices, including subsidies for gasoline; ¥1.3 trillion for sustained wage increases and regional growth; ¥3.4 trillion for the promotion of domestic investment; and ¥1.3 trillion for the promotion of social transformation, including measures to deal with the declining population. To ensure the safety and security of society, ¥4.3 trillion will be earmarked.