Japanese Prime Minister Fumio Kishida has revealed plans concerning an unprecedented spending package worth around 56 trillion yen ($490 bln) to revive and boost the world’s third economy.
The initiative was presented on Friday to the Cabinet members and will now undergo the procedure of parliamentary approval.
"Our package has more than enough content to deliver a sense of security and hope to Japan’s population," Kishida said in a statement.
The package will include cash handouts worth 100,000 yen ($880) each to households, vulnerable categories, and minors; aid for heavily-hit businesses, predominantly small ones, and reserves in case the country has to make emergency purchases.
This has become Japan’s first stimulus package in 2021 and the third since the pandemic outbreak. Up to 70% of the sum will consist of budget spending, loans and investments.
"We'll mobilize all available tools to fund the package, including issuing deficit-covering bonds," the Prime Minister promised.
Besides, the officials are planning to relaunch the domestic tourism industry in 2022 which will boost such sectors as consumption, hotels, and restaurants. Still, foreigners will be banned from entering the country.
According to preliminary data issued on Monday, authorities recorded in the third quarter a 0,8% drop in the GDP; the results turned out to be worse than expected.
Since the pandemic outbreak, Japan has recorded over 1.7 mln cases and around 18,000 deaths. More than 75% of the Japanese have been fully vaccinated.