Japan’s new stimulus package is reported to include spending about 55.7 trillion yen ($ 488 billion) to support economies affected by the Covid-19 pandemic.
With that value, it will surpass the previous expenditure recorded as the highest in 2020. This in turn makes the size of expenditure, including private sector funds will be 78.9 trillion yen.
Benefits for households and businesses have been increased in line with the distribution policy by Prime Minister Fumio Kishida. An increase in government bonds to cover the deficit is inevitable, but discussions on funding have been postponed.
The main part of the package is to provide 100,000 yen in the form of cash grants to all citizens aged 18 and under and support grants of up to 2.5 million yen for businesses.
About 31.9 trillion yen will be allocated in the fiscal 2021 supplementary budget while another 5 trillion yen in the reserve fund will be included in the 2022 fiscal budget plan.
Previously, the largest economic stimulus package was 48.4 trillion yen implemented in April 2020. In December of the same year, the government injected another round of stimulus worth 40 trillion yen.
