Japan mulling ¥20 tril. to help deal with rising prices

The Yomiuri Shimbun

13:05 JST, October 22, 2022

The government and ruling parties are mulling a plan to spend ¥20 trillion on a comprehensive package of economic measures to help deal with rising prices. The content and scale of the measures will be thrashed out next week and the government will make a cabinet decision on Oct. 28.

The second supplementary budget for fiscal 2022, which will support the measures, will be submitted to the extraordinary Diet session.

The comprehensive package will comprise four pillars: measures to deal with price hikes and raise wages; strengthening economic structure by taking advantage of the weak yen; accelerating “new capitalism”; and ensuring the safety and security of the people.

The package’s main plank will be the measures to deal with soaring energy prices, with steps being taken to help offset the burden of rising electricity and gas prices.

The ongoing subsidy program to control gasoline prices will be extended beyond January. The plan is also expected to include financial support for pregnant women and measures to promote investment in the fields of decarbonization and digital technology.

The measures will primarily be financed by issuing deficit-covering government bonds.