TOKYO (Reuters) -Japan’s government will include temporary payouts to families with children in a planned stimulus package that will likely exceed 20 trillion yen ($127 billion), the Asahi newspaper reported on Thursday.
Aside from income tax breaks and reduction in the gasoline tax rate, the package will feature total spending exceeding 17 trillion yen, the paper said without citing sources.
The spending will include subsidies distributed to local governments for steps to cushion the blow to households from rising living costs, as well as those to curb utility bills, the paper said.
The government will also deliver 20,000 yen per child on top of existing child allowances, according to the paper.
The government will aim to pass through parliament next month a supplementary budget to fund the package. The prime minister’s office was not immediately available to comment.
Public broadcaster NHK reported on Thursday the size of the stimulus package will likely be around 21.3 trillion yen.
Since taking office last month, Prime Minister Sanae Takaichi has pledged to compile a big spending package to mitigate households’ pain from rising living costs and boost investment.
Her administration has also vowed to promote investment in industries like artificial intelligence, semiconductor chips and shipbuilding.
Market expectations that Takaichi, known as an advocate of expansionary fiscal and monetary policy, will pursue huge spending backed by low interest rates have fueled a sell-off in the yen and Japanese government bonds.
The Kyodo news agency reported on Wednesday the government will compile a stimulus package sized around 20 trillion yen and funded by a supplementary budget worth around 17 trillion yen, which would far exceed the previous year’s 13.9 trillion yen.
($1 = 157.0700 yen)
(Reporting by Leika Kihara; Editing by Stephen Coates)
