Saturday, 10 May 2025
America Age
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Font ResizerAa
America AgeAmerica Age
Search
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 America Age. All Rights Reserved.
America Age > Blog > World > Japan Cabinet OKs $200B spending plan to counter inflation
World

Japan Cabinet OKs $200B spending plan to counter inflation

Enspirers | Editorial Board
Share
Japan Cabinet OKs 0B spending plan to counter inflation
SHARE

TOKYO (AP) — Japanese Prime Minister Fumio Kishida’s government approved Friday a hefty economic package that will include about 29 trillion yen ($200 billion) in government spending to soften the burden of rising utility rates and food prices.

Globally surging prices and a weakening of the yen have amplified costs for imports, pushing inflation higher.

The stimulus package includes subsidies for households that are largely seen as an attempt by Kishida to lift his plunging popularity. His government has been rocked by the ruling Liberal Democratic Party’s close ties to the South Korean-based Unification church, which surfaced after the assassination of former leader Shinzo Abe in July.

“The economic measures are designed to overcome rising prices and to achieve an economic recovery,” Kishida said in a news conference. “We will protect the people’s lives, jobs and businesses, and strengthen the economy for the future.”

Any market reaction to another flood of stimulus was likely already taken into account earlier in the week as share prices fell in Tokyo, with the benchmark Nikkei 225 losing 0.9% to 27,105.20.

Japan has stuck to using fiscal measures, or government spending, to counter current economic challenges. While central banks around the world are raising interest rates aggressively to try to tame decades-high inflation, Japan’s inflation rate is a relatively moderate 3% and the greater fear is that the economy will stall, not overheat.

The Bank of Japan, which has kept its benchmark rate at minus 0.1% since 2016, kept its longstanding lax monetary policy at a policy making meeting that wrapped up on Friday.

In doing so, it runs the risk of seeing the yen weaken further since the Federal Reserve is still raising rates, which tends to push the dollar higher. That in turn will raise prices in Japan since it imports much of what it consumes.

Kishida said Friday that the government was vigilantly monitoring movements in exchange rates. Japan has spent tens of billions of dollars in market interventions to support the yen in recent weeks as the currency sank to a 32-year low against the dollar of more than 150 yen. On Friday, it was trading near 148 yen to the dollar. At the beginning of the year, it was at about 115 yen.

Kishida said the overall size of the stimulus package, including private-sector funding and fiscal measures, is expected to amount to 71.6 trillion yen ($490 trillion).

The plan includes about 45,000 yen ($300) subsidies for household electricity and gas bills and coupons worth 100,000 yen ($680) for women who are pregnant or rearing babies.

“We will make sure to deliver the measures to everyone and do our utmost so that people can feel supported in their daily lives,” Kishida said earlier Friday, after preliminary approval of the package earlier in the day.

The 29 trillion yen ($200 billion) spending package will be part of a supplementary budget that still must be approved by the parliament.

Kishida vowed to compile and submit a budget plan and get it approved as soon as possible.

His support ratings have sunk since July amid public criticisms over his Liberal Democratic Party’s longstanding cozy ties with the Unification Church, which is accused of brainwashing adherents into making huge donations, causing financial hardships and breaking up families.

An LDP internal survey showed about half of its 400 lawmakers were tied to the church, though not as followers. Kishida’s economy minister, Daishiro Yamagiwa, was obliged to resign earlier this week because of his ties with the church and failure to explain them. He was replaced by former health minister Shigeyuki Goto.

The hefty spending package will require issuing of more government bonds, further straining Japan’s worsening national debt that has piled up as the government spent heavily to counter the impact of the pandemic. Japan now has a long-term debt exceeding 1.2 quadrillion yen ($8.2 trillion), or more than twice the size of its economy.

Share This Article
Twitter Email Copy Link Print
Previous Article Ukraine Latest: Biden Questions Putin’s Nuclear Denials Ukraine Latest: Biden Questions Putin’s Nuclear Denials
Next Article Top Asian News 5:32 a.m. GMT Top Asian News 5:32 a.m. GMT

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
InstagramFollow
LinkedInFollow
MediumFollow
QuoraFollow
- Advertisement -
Ad image

Popular Posts

John Legend says Kanye West’s support of Trump ended friendship

Kanye West and John Legend haven't repaired their fractured relationship. Legend, whom West has publicly…

By Enspirers | Editorial Board

Kelsea Ballerini Says That She and Doppelgänger Reese Witherspoon Have Become ‘Lovely Friends’

  Kelsea Ballerini is getting to know her lookalike Reese Witherspoon."We met several years ago at…

By Enspirers | Editorial Board

Qatar says it will boost investment in Spain by $4.9 billion

MADRID (AP) — The emir of Qatar says his energy-rich Gulf state is set to…

By Enspirers | Editorial Board

China’s Xi to visit Hong Kong for handover anniversary

BEIJING (AP) — Chinese leader Xi Jinping will visit Hong Kong this week to celebrate…

By Enspirers | Editorial Board

You Might Also Like

Ukraine conflict reside: leaders of UK, France, Germany and Poland arrive in Kyiv to push for ceasefire
World

Ukraine conflict reside: leaders of UK, France, Germany and Poland arrive in Kyiv to push for ceasefire

By Enspirers | Editorial Board
Are we heading for an additional world conflict – or has it already began?
World

Are we heading for an additional world conflict – or has it already began?

By Enspirers | Editorial Board
Rümeysa Öztürk, detained Tufts pupil, launched from federal custody – because it occurred
World

Rümeysa Öztürk, detained Tufts pupil, launched from federal custody – because it occurred

By Enspirers | Editorial Board
Two males discovered responsible of felling Sycamore Hole tree
World

Two males discovered responsible of felling Sycamore Hole tree

By Enspirers | Editorial Board
America Age
Facebook Twitter Youtube

About US


America Age: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Terms of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 America Age. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?