Japan's Supplementary Budget For Economic Package Likely To Exceed $198 Billion
Japan's government has decided on the details of a new economic package aimed at tackling soaring prices and the weakening yen. The supplementary budget to fund the package is expected to exceed 29 trillion yen, or about 198 billion dollars.
The package plan was presented at meetings of the ruling Liberal Democratic Party and coalition partner Komeito on Wednesday, and basically approved by both.
To ease the burden of rising electricity costs on households, the government plans to provide a subsidy of seven yen, or five cents, per kilowatt hour starting January next year. This is expected to reduce bills by about 20 percent.
For town gas, the government plans to provide a subsidy of 30 yen, or 20 cents, per 1 cubic meter.
The government also plans to adjust and extend subsidies to petroleum wholesalers through the first half of the next fiscal year to curb rising prices of fuel, including gasoline.
As for child-raising, the government plans to provide support totaling about 100,000 yen, or 680 dollars, to ease the burden of purchasing childcare goods. The recipients will include households with children aged zero to two.
The government initially planned to call for about 170 billion dollars from the general account for the current fiscal year's second supplementary budget. But LDP lawmakers pointed out the amount did not take the current economic situation into account and was insufficient. Prime Minister Kishida Fumio and Finance Minister Suzuki Shunichi therefore discussed the matter, and it became likely that the amount would top 198 billion dollars.
Arrangements are underway to finalize the plan on Friday.