Japan’s cabinet reportedly announced a stimulus package totaling 21.3 trillion yen ($135.5 billion) on Friday, as Prime Minister Sanae Takaichi seeks to boost the country’s slowing economy and offer support to inflation-hit consumers.
Public broadcaster NHK reported that the package was based on three pillars: addressing rising prices, achieving a strong economy, and strengthening defense and diplomatic capabilities, according to a Google translation.
The cabinet also said it would expand local government grants, as well as provide subsidies for electricity and gas bills. The subsidies will start next January, amounting to about 7,000 yen for a standard household over a three-month period starting next January.
Taxes on gasoline will also be eliminated, according to the report.
Japan also plans to establish a 10-year fund to enhance shipbuilding capabilities, and enact measures to raise defense spending to 2% of its gross domestic product by fiscal year 2027.
