TOKYO: The Japanese government on Friday signed off on a massive stimulus package worth 21.3 trillion yen ($135.8 billion) to boost the economy.
The measures include rice voucher subsidies to ease affordability pressures, support for electricity and gas bills over the coming winter and cash payments for families with children.
In order to fund the plan, the government of new Prime Minister SanaeTakaichi has drafted a supplementary budget of 17.7 trillion yen for the fiscal year ending in March, which is expected to be passed by the end of the parliamentary session in December.
Japan, the world's fourth largest economy behind the US, China and Germany, is struggling with high government debt, which currently amounts to more than double of annual gross domestic product.
Expectations of the growth package have pushed the yen lower and weighed on government bond prices in recent days, reflecting concerns over a further deterioration in public finances.
Further planned measures to boost the economy include investments in shipbuilding, artificial intelligence and national defence.
Japan's current debt amounts to around 250 per cent of gross domestic product ratio, the highest among major economies.
The bundle of measures from Japan's fifth premier in as many years includes a one-off 20,000-yen ($127) cash handout per child and 7,000 yen per household for energy bills.
Takaichi came to power last month pledging to fight inflation after anger over rising prices helped undo her predecessor, Shigeru Ishiba, who was in office barely a year.
"Ordinary people are having it tough these days", financial services employee Kazuo Kaitsuka, 75, said on Friday near the Tokyo stock exchange.
"I worry future generations might have to deal with the consequences of (the size of the stimulus). So I think a more moderate scale would have been better", he said. — Agencies
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