Prime Minister Fumio Kishida on Thursday revealed an approximately ¥17 trillion ($113 billion) economic stimulus package, which includes a contentious plan to cut taxes, amid widespread skepticism about the measures within his own Liberal Democratic Party.
It remains unclear whether the measures, aimed at mitigating the impact of rising prices on households, will help boost Kishida’s dwindling support rate as the government faces the need to increase taxes to fund hikes in defense and child care spending.
The package, approved by the Cabinet in the evening, also includes provisions aimed at bolstering the supply of goods and services in the market and creating the conditions for continuous pay hikes.