Japan will spend around 2,000 billion yen ($ 18 billion) in cash payments to households with children under the age of 18 as part of an economic stimulus package aimed at mitigating the impact of the COVID pandemic. 19, the Yomiuri newspaper reported on Friday.
Under the plan, households are entitled to receive 100,000 yen or ??65,000 per child regardless of household income by the spring of next year, the newspaper said without citing sources.
The government will use its reserves in state coffers to fund cash payments, the newspaper said, suggesting that the plan will not lead to a huge public debt issuance.
The administration of new Prime Minister Fumio Kishida is also considering offering cash payments to low-income households and temporary workers, the newspaper said, adding that details were being worked out by the ruling party.
âCompared to the previous global payment covering all households, more of the money could be spent on consumer spending this time around, as it targets those who need the money,â said Masato Koike, senior economist at Dai-ichi Life Research Institute.
Kishida has vowed to compile a full-scale stimulus package this month and the government aims to have it passed by parliament by the end of this year. Kishida, however, offered little clue as to the potential scale of spending and the amount of additional debt issuance.
“The Prime Minister has repeatedly stated that the administration is ready to offer payments to people suffering from the pandemic. Discussions will continue on the basis of this understanding,” Economy Minister Daishiro Yamagiwa told Friday. the press, asked about Yomiuri’s report.
The idea of ââoffering cash to households with children was a campaign pledge by Komeito, a coalition partner of the Kishida Liberal Democratic Party, made ahead of the general election on October 31. It differs somewhat from Kishida’s call for targeted payments to those who need help the most.
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