Japan’s new Prime Minister Ishiba Shigeru has instructed his ministers to compile an economic stimulus package to realize a virtuous cycle of growth and distribution.
Ishiba said during a Cabinet meeting on Friday that workers’ salaries and corporate capital investment continue to increase.
He ordered his ministers to present an economic package focused on three pillars. They are combating inflation, promoting economic growth with emphasis on regional revitalization and ensuring the public’s security and safety.
The package is expected to include cash handouts for low-income families struggling with the higher cost of living and subsidies for local governments.
There are also likely to be steps aimed at making society more resilient to higher energy costs.
Ishiba also called for measures to promote investment in domestic industries with high growth potential and to help medium-size and small businesses to raise wages.
The package will also feature efforts to boost the recovery of the Noto Peninsula in Ishikawa Prefecture. The area was devastated by a massive earthquake on New Year’s Day and torrential rains last month. Planned measures include a thorough overhaul of disaster preparation and improvements to evacuation centers.
Chief Cabinet Secretary Hayashi Yoshimasa said the government will work closely with the ruling coalition parties to discuss concrete measures. He also said: “The scale of the supplementary budget will be determined after we compile specific policies. There is no clear target, at this point.”
Ishiba said his Cabinet will submit a supplementary budget for this fiscal year including a stimulus package to the Diet soon after the Lower House election set for October 27th.