US EditionJapan's cabinet approves lavish $135 billion stimulus as markets fret over fiscal policy
The stimulus includes energy subsidies, tax cuts, and child cash handouts, aiming to raise GDP by 1.4 percentage points annually, the Cabinet Office said.
- On Nov 21, Japan's cabinet approved a 21.3 trillion yen stimulus worth $135.40 billion, including 17.7 trillion yen in general account outlays and 2.7 trillion yen in tax cuts.
- Based on three pillars, the measures aim to ease costs and strengthen security as officials say the package targets relief for households and businesses while boosting long-term growth.
- Households will receive targeted relief including 3,000 yen rice vouchers and 500 billion yen in energy subsidies, reducing bills by roughly 7,000 yen next year.
- Markets sold the yen and drove super-long Japanese government bond yields to record highs amid concerns additional government bond issuance will exceed last year's 6.69 trillion yen.
- The cabinet plans to approve a supplementary budget as early as Nov 28, aiming for parliamentary approval and strategic investments in shipbuilding, AI, and defense spending 2% of GDP by fiscal 2027.
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Japan, the fourth largest economy in the world, is already in huge debt. With a new billion-dollar financial injection, Prime Minister Takaichi wants to boost the economy. But experts are skeptical.
Japan's cabinet approves lavish US$135bil stimulus as markets fret over fiscal policy
TOKYO: Japanese Prime Minister Sanae Takaichi's cabinet approved a 21.3 trillion yen (US$135.40 billion) economic stimulus package on Friday (Nov 21), marking the first major policy initiative under the new leader, who has pledged to pursue expansionary fiscal measures.
With a large financial injection, Japan's new government wants to subsidise rice and energy and invest in ships and AI. Concern for public debt is growing on the capital markets.
Japan OKs $135 billion stimulus package to help revive its sluggish economy
TOKYO (AP) — Japan’s Cabinet approved a 21.3 trillion yen ($135.4 billion) stimulus package Friday to help spur the economy through expansionary government spending and to relieve the impact of higher prices. After taking office last month, Prime Minister Sanae Takaichi promised to boost government spending despite concerns that such moves will delay progress on trimming Japan’s national debt, which is about triple the size of its economy. The s…
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