Japanese government to spend extra 2 trillion yen to ease high inflation-Xinhua

Japanese government to spend extra 2 trillion yen to ease high inflation

Source: Xinhua| 2023-03-20 20:33:30|Editor: huaxia

TOKYO, March 20 (Xinhua) -- The Japanese government plans to spend over 2 trillion yen (15 billion U.S. dollars) out of its reserve funds to take additional measures to ease the pain of accelerating inflation, local media said Monday.

As part of a fresh inflation-relief package, the government plans to add around 1.2 trillion yen to the extant temporary subsidies for regional development, allowing local municipalities to use flexibly, Kyodo News reported citing government sources.

Of the amount, 500 billion yen will be used to support low-income families to cushion the impact of high prices, with the government planning to give 30,000 yen to each low-income household, the report said.

Meanwhile, the government will spend around 1 trillion yen to give an extra 50,000-yen handout per child for low-income child-rearing families, it added.

The government will hold talks with the ruling coalition of the Liberal Democratic Party and Komeito before adopting the package as early as Wednesday, Kyodo News said.

"We will draw up additional steps and implement them swiftly to protect people's livelihoods and businesses," Chief Cabinet Secretary Hirokazu Matsuno told a regular press briefing.

Reserve funds in a state budget are allocated for use in emergency situations and the government is not required to seek parliamentary approval for the way the money is spent.

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