Overview
- Government sources say the package is likely to exceed last year’s ¥13.9 trillion (about $92 billion) and would be the administration’s first major economic move.
- It is structured around three pillars: measures to counter rising prices, investment in growth industries, and national security priorities.
- The plan includes swiftly abolishing the provisional gasoline tax and expanding local grants to support small and mid-sized firms left out of wage tax incentives.
- Funding will come through a supplementary budget now being drafted, with deficit-covering bonds possible if spending rises; Finance Minister Satsuki Katayama said it is too early to specify the size but it should cover necessary measures.
- An announcement could come as early as next month, and markets responded to the report with the Nikkei reversing losses and the yen little changed.