Japanese Prime Minister Fumio Kishida said on Thursday the government will spend over 17 trillion yen ($113 billion) on a package of measures to cushion the economic blow from inflation, which will include tax cuts, APA reports citing Reuters.
To fund part of the spending, the government will compile a supplementary budget for the current fiscal year of 13.1 trillion yen, Kishida told reporters.
Including spending by local governments and state-backed loans, the size of the package will total 21.8 trillion yen.
"Japan's economy is seeing a big opportunity open up to shift to a new stage for the first time in three decades," as it exits from a deflationary spiral, Kishida told a meeting of government and ruling party executives on Thursday.
"That's why we need to help companies boost profitability and earn revenues to boost wages," he said.
Reuters reported on Wednesday the government is considering spending more than 17 trillion yen for the package, which will include temporary cuts to income and residential taxes as well as subsidies to curb gasoline and utility bills.