Japan to allocate USD 488 billion stimulus package

In order to compensate for the ill effects of the aftermath of the COVID-19 pandemic, Japan has decided to employ a whopping 55.7 trillion yen (USD 488 billion) stimulus package, Kyodo News reported, citing government sources.

In order to compensate for the ill effects of the aftermath of the COVID-19 pandemic, Japan has decided to employ a whopping 55.7 trillion yen (USD 488 billion) stimulus package, Kyodo News reported, citing government sources. The stimulus package will inculcate policy measures funded by the private sector such as emergency bank lending to struggling businesses worth 78.9 trillion yen, reported the Japanese publication reported citing government sources.

Prime Minister of Japan Fumio Kishida and his cabinet will grant consent to the package on Friday. Increased from a previous plan of about 30 trillion yen, the fiscal spending, including government "zaito" investment, loan programs and local government expenditures, will be more than the 48.4 trillion yen outlay for a similar package compiled in April 2020 by Former Prime Minister Shinzo Abe's administration, reported Kyodo News.

100,000 yen handouts in cash, vouchers for children aged 18 or younger in households with an income of fewer than 9.6 million yen are among the key aspects of the stimulus package. Another 2 trillion yen will be allocated for financial aid for struggling families and students, while small companies reeling from the pandemic are expected to receive financial support of up to 2.5 million yen each, reported Kyodo News.

In order to further fund the stimulus package, the Japanese government plans on passing a supplementary budget in an extraordinary parliamentary session by year-end. The fiscal budget through March is anticipated to be 31.9 trillion yen, the Japanese publication said. A new subsidy program for oil distributors will be set up to contain prices along with restarting of the "Go-To Travel" subsidy program in an effort to prop up the pandemic-hit tourism sector, it added.

For economic boost, over 500 billion yen will be allocated to the development of key technologies such as artificial intelligence, amid intensifying global competition for advanced technologies and concerns about intellectual property protection. According to Kyodo News, a few measures under the package will be covered by the initial budget for fiscal 2022, to be drafted next month. (ANI)

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