A ¥21.3 trillion stimulus package is set to be greenlit by the Cabinet of Prime Minister Sanae Takaichi on Friday.
It will be the largest stimulus package since the pandemic — when a ¥17.7 trillion program was rolled out — although it is smaller than it might have been, with some legislators earlier pushing for ¥25 trillion of support.
The package will include ¥17.7 trillion of spending, ¥2.7 trillion in tax breaks and ¥900 billion in special account spending.
It will be the first economic package under the Takaichi administration, which champions "responsible and proactive fiscal policy” to fight inflation and increase investment in critical industries and technologies.
Markets have been volatile in recent days, in part due to the cost of the program and the stressing of Japan's national balance sheet.
The Cabinet is expected to submit an extra budget bill to finance the package to parliament, which is in session until Dec. 17.
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