Japan to spend $48 billion in relief package to cope with rising living costs By Reuters

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© Reuters. FILE PHOTO: Businessmen wearing protective face masks walk on a pedestrian bridge, amid the spread of the coronavirus disease (COVID-19), in a business district in Tokyo, Japan June 24, 2020. REUTERS/Issei Kato/File Photo

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By Takaya Yamaguchi

TOKYO (Reuters) – Japan’s government will spend $48 billion to fund subsidies and other relief measures to cushion the economic blow from rising fuel and raw material prices, a document obtained by Reuters showed on Monday.

Of the 6.2 trillion yen in spending, about 2.7 trillion yen will be funded by an extra budget the government will compile later this year, the document showed.

The document did not include details on how the remainder of the spending will be funded.

Prime Minister Fumio Kishida’s administration is expected to announce the relief package on Tuesday, part of efforts to ease the pain inflicted by soaring prices for commodities globally in the wake of Russia’s invasion of Ukraine.

The package will include 1.5 trillion yen in spending to deal with soaring fuel costs and 1.3 trillion yen for cash payouts to low-income households, the document showed.

($1 = 128.3000 yen)

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