The Tax expenditure of the package will amount to 39 trillion yen (260,000 million dollars), funded with an additional budget of 29.6 trillion yen ($201 billion). The government expects the spending to boost Japan’s gross domestic product (GDP) by 4.6%.
“We will make sure that Japan does not experience the kind of 10% inflation seen in the US and Europesaid the Prime Minister fumio kishida at a press conference.
“We have decided target energy prices directlywhich are the main factors behind the recent rise in inflation.
With their approval ratings falling to levels that could hinder the execution of your programKishida has been subjected to strong Pressure by the legislators of the ruling party so that increase spending in order to ease the difficulties of households and retailers.
The encouragement includes subsidies to reduce household electricity bills by 20% from January to September. will be issued coupons for families with newborns and will expand a subsidy to curb prices gasoline.
These and other measures will reduce consumer prices in Japan by about 1.2 percentage points between January and September next year, according to a government estimate.
The Japanese government’s announcement comes on the same day that various inflation figures for Europe were released that reflect the difficulties in controlling price rises: in Italyclose to 12%, in Spain was 7.3% year-on-year while in France reached 6.2%. Unlike the policy of raising rates that is being applied in the rest of the world, the Bank of Japan ratifies its policy of low rates.
Source: Ambito
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