Japan unveils $135bn stimulus

Biggest portion will go to price relief, including help with gas and electric bills

- ERICA YOKOYAMA AKEMI TERUKINA

People cross a road in the Shimbashi district of Tokyo on Thursday.

Japanese Prime Minister Sanae Taka-ichi's cabinet approved the largest round of extra spending since the pandemic, deploying funds to address the frustrations of voters in a package that may unsettle investors scrutinising the nation's finances.

The stimulus plan includes ¥17.7 trillion ($112 billion, 3.66 trillion baht) in general account spending, the Cabinet Office said yesterday. Those outlays would likely be funded via an extra budget, and they mark a 27% jump over what her predecessor rolled out a year ago. The total package is valued at ¥21.3 trillion, with the bulk of the measures aimed at price relief.

“We've put together this package to protect livelihoods, and particularly to respond quickly to the problem of inflation,” Ms Takaichi said after the details of the measures were released.

The biggest portion will go to price relief, totalling ¥11.7 trillion. That includes provisions to dole out ¥7,000 in subsidies for gas and electricity bills for each household over three months through March, a one-off ¥20,000 cash handout per child and ¥2 trillion in funds to aid regions.