Japan Mulls $265bn Pandemic Stimulus

Japan’s government is eyeing an economic stimulus package worth around $265 billion to support the country’s recovery from the pandemic, a move that would require new national debt.

The Japanese government plans to hand out 100,000 yen in subsidies to children and is drawing up other measures in a stimulus package that will support consumption in the pandemic-hit economy, local media Kyodo news reported on Nov. 7.

Prime Minister Fumio Kishida had promised a large-scale pandemic stimulus this month that is aiming to be passed by parliament by the end of 2021.

Part of the spending will come from funds leftover from last year’s budget while the rest will be covered by bonds, sources familiar with the matter told Kyodo.

Travel subsidies will also be included in the package to boost domestic tourism, along with funding for university research.

Meanwhile, economists are hoping that more spending on the service sector will support Japan’s economy as global supply chain problems continue to slow down the goods sectors.

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