Japan Unveils 21 Trillion Yen Economic Stimulus Plan, Over Half Allocated to Inflation Relief

BlockBeats News, November 21: Japanese Prime Minister Sanae Takaichi's cabinet has approved the largest additional spending plan since the pandemic, allocating funds through a comprehensive package to alleviate voter dissatisfaction. However, this move may raise concerns among investors closely monitoring Japan's fiscal situation, as it has already caused the yen to fall to a 10-month low and ultra-long-term government bond yields to surge to record highs. Japan's Cabinet Office stated on Friday that the stimulus plan includes 17.7 trillion yen (approximately $112 billion) in general account spending. This expenditure is likely to be funded through a supplementary budget, marking a 27% increase compared to the scale of the plan introduced by her predecessor a year ago. The overall package amounts to 21.3 trillion yen, with measures ranging from inflation relief to support for investments in key sectors. The substantial scale of inflation relief funds highlights Sanae Takaichi's determination to address persistent inflation, a phenomenon that has fueled voter dissatisfaction and led to the resignation of her predecessor. Data released on Friday showed that Japan's key price index has remained at or above the Bank of Japan's 2% target for 43 consecutive months, setting the longest record since 1992. The Japanese cabinet plans to approve the supplementary budget for funding this package as early as November 28, aiming for parliamentary approval by the end of the year. (Jin10)