Japan Unveils ¥21 Trillion Economic Stimulus Package, with Over Half Allocated to Inflation Relief

BlockBeats News, November 21st - Japanese Prime Minister Sanae Takaichi's Cabinet approved the largest supplementary budget since the outbreak of the pandemic, disbursing funds through a comprehensive plan to alleviate voter discontent. However, this move may cause concerns among investors closely monitoring Japan's fiscal situation, as it has led to the yen falling to a 10-month low and the ultra-long-term government bond yield surging to a historic high.

The Japanese Cabinet Office stated on Friday that this stimulus plan includes ¥17.7 trillion (approximately $112 billion) in general account spending. These expenditures are likely to be provided through a supplementary budget, representing a 27% increase from the scale introduced by its predecessor a year ago. The overall plan has a scale of ¥21.3 trillion, ranging from price relief to targeted sector investment support.

The massive scale of price relief funds highlights Sanae Takaichi's determination to address persistent inflation, a phenomenon that has exacerbated voter discontent and led to the ousting of her predecessor. Data released on Friday showed that Japan's key price index has remained above the central bank's 2% target level for 43 consecutive months, marking the longest streak since 1992.

The Japanese Cabinet plans to approve a supplementary budget bill on November 28th to provide funding for this plan and aims to secure parliamentary approval by the end of the year. (Jin10)