Japan planning $87bn extra budget to fund stimulus package, paper says

TOKYO: The Japanese government is making arrangements to compile a supplementary budget of about 13.5 trillion yen ($87 billion) to fund a stimulus package to help low-income households and offset rising prices, media reported.

Under the plan, the government would provide 30,000 yen ($193) to low-income households that are exempt from residential taxes and 20,000 yen per child for households with families, the Sankei newspaper reported late on Wednesday.

It is also considering restarting subsidies for electricity and gas prices for three months from January to respond to high fuel costs, three sources familiar with the matter told Reuters.

The subsidies were discontinued late last month. Tokyo is considering gradually phasing out separate subsidies for gasoline fuels, which were originally scheduled to end in December, the sources said.

The government has spent 11 trillion yen over three years to help alleviate the impact of rising utility costs and gasoline prices on households.

Prime Minister Shigeru Ishiba is looking to finalise the stimulus package on Nov. 22, according to the sources.

The plans may change depending on discussions with opposition parties, however, after last month’s snap election left the ruling Liberal Democratic Party (LDP) and its coalition partner Komeito leading a fragile minority government.