Japan Government Spending

Japan’s Prime Minister Fumio Kishida has unveiled a record stimulus package worth approximately JPY 55.7 trillion aiming to boost growth and help the economic recovery. Around JPY 31.9 trillion will need to be funded by an extra budget to be submitted to parliament this year and the government plans to use some reserves for emergency pandemic spending and left-over money from previous stimulus to fund part of it. The new spending plan includes handouts of JPY 100,000 in cash and vouchers for children aged 18 or younger; JPY 2 trillion to struggling families and students; JPY 2.5 million to to small companies; and JPY 22.1 trillion increase hospital beds and medical supplies. The spending plan is expected to boost the economy by around 5.6%.