Japanese Government Approves $250 Billion Economic Package to Address Inflation Challenges
8 hours ago
Japanese government approves $250 billion economic package to combat inflation and rising energy costs, aiming to boost disposable income and support low-income families. Opposition parties push for supplemental budget approval amid economic challenges.
In hopes of tackling continuing issues of inflation, the Japanese government okayed a wide-ranging economic package worth $250 billion to address racing energy costs and benefit low-income families.
The Liberal Democrats, led by Prime Minister Shigeru Ishiba, aimed to use the package to increase disposable income, conceding to calls from one of the opposition parties to pass the supplemental budget.
The measure comes on the heels of the Liberal Democrats and its junior coalition partner losing its majority in Japan’s House of Representatives in the general election on Oct. 1.
Japan’s economy has remained one of the worst among the world’s advanced economies. Its grew for the second consecutive quarter with the assistance of strong private spending from July to September.
The devaluing of the yen has continued to be an issue driving inflation, however, which has led to a jump in import costs.
Nomura Research Institute executive economist Takahide Kiuchi said while providing cash assistance should be a benefit many of the high-income owners do not need such support.
“Without sufficient scrutiny, easy countermeasures for inflation have been repeatedly implemented,” Kiuchi said in a report, according to Japan Times. “They are pork barrel spending and are serious problems.” (UPI)
