Japan is pushing for an emergency package of $ 103 billion to ease the economic blow caused by the spike in raw material costs, with the government planning further long-term reforms later this year, Prime Minister Fumio Kissinta said on Tuesday.
According to Reuters, Kishinda is under pressure to increase budget spending in the run-up to the July parliamentary elections, effectively putting Japan on a different path from many other Western economies that are gradually lifting the ban. support they received due to the coronavirus health crisis.
The 13.2 trillion yen ($ 103 billion) “relief” package, which will be financed mainly through the freezing of reserves under this year’s budget, will include gradual steps to deal with the direct impact of rising prices. such as subsidies to gasoline wholesalers and cash payments to low-income households with children.
Of the total amount of the package, direct government spending will amount to 6.2 trillion. gen., while the remaining amount will relate to indirect costs such as private sector lending.
The government will prepare an additional budget, which will be put to a vote in the current session of parliament in order to replenish reserves and secure funds to deal with any new waves of coronavirus or the prolonged maintenance of fuel prices, as Kisinda.
“We must prevent the pandemic from disrupting the pace of economic and social activity recovery by increasing the cost of fuel and raw materials,” Kishida told a news conference.
The Japanese Prime Minister added that in addition to the relief package, the government will prepare a “comprehensive” package of measures after the elections for the Upper House, which will be the spearhead for the change of Japanese society.
The package will be aimed at helping Japan become a carbon-neutral society, and will include measures to promote the government’s economic policy focusing on wealth redistribution, Kishida said, without elaborating.
“We have to act proactively, looking at the medium to long term,” he said.
Source: Capital
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