Japan’s new Prime Minister Sanae Takaichi is preparing an economic stimulus package that is likely to exceed last year’s $92 billion to help households tackle inflation, government sources familiar with the plan said on Wednesday.
The package of more than 13.9 trillion yen ($92.19 billion) marks Takaichi’s first major economic initiative since the advocate of big fiscal spending took office on Tuesday, reflecting her commitment to what she calls “responsible proactive fiscal policy.”
The package will also include investments in growth sectors such as artificial intelligence and semiconductors as the government focuses on strategic economic development.
The exact scale of the package is still being finalised, the sources said. It could be announced as early as next month.
To fund the measures, the government is moving ahead with drafting a supplementary budget for the current financial year through March, with an eye toward passing it during the upcoming extraordinary parliament session.
If additional spending exceeds initial expectations, the government may need to issue deficit-covering bonds, raising questions about how to balance economic growth with fiscal discipline.
($1 = 150.7800 yen)
