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Investing.com-- Japan’s parliament on Friday approved a 21.3 trillion yen ($135 billion) stimulus package, clearing the way for one of the country’s largest spending drives since the pandemic as the government seeks to revive consumption and support key industries.
The package includes 17.7 trillion yen in general spending and 2.7 trillion yen in temporary tax cuts, with the remainder directed toward subsidies and targeted programmes.
The measures are expected to be funded through a supplementary budget that lawmakers aim to finalise later this month.
Newly appointed Prime Minister Sanae Takaichi’s administration has positioned the package as essential to sustaining the recovery and boosting competitiveness in sectors such as semiconductors, artificial intelligence and shipbuilding.
The plan also includes payouts aimed at easing pressure on households facing elevated living costs.
Financial markets, however, reacted cautiously. The yen gained slightly after hitting a 10-month low while long-term government bond yields firmed, reflecting investor concern over Japan’s mounting public debt and the implications of aggressive fiscal expansion.