Japan considers support for low-income earners
Tokyo, The Gulf Observer: The Japanese government and ruling party are considering including relief measures for low-income households in a fresh economic package to be compiled to mitigate the pain of inflation, sources close to the matter said Tuesday.
Prime Minister Fumio Kishida earlier in the day instructed his cabinet ministers to deploy “all possible tools” to alleviate the burden of surging prices and support the economy when putting together the economic package by the end of October.
Kishida, who places importance on wealth redistribution, told a cabinet meeting that the government will “reduce tax and social security burdens on top of providing various benefits,” at a time when Japan’s fiscal health remains the worst among developed nations.
He also unveiled plans to review the use of emergency funds budgeted to cope with crises such as the pandemic and divert them for use in promoting sustained wage growth.
The economic package will be funded by a supplementary budget consisting of five pillars — easing the pain of inflation on households, spurring more wage growth, increasing investment, addressing challenges posed by the nation’s declining population and securing the safety and security of the Japanese people.
The government is considering issuing cash payments or coupons with specified usage as part of relief measures for low-income households, with additional support for such households with children likely also to be a point of focus.
Kishida at the cabinet meeting Tuesday also expressed plans to focus on initiatives to promote tourism, including increasing the number of foreign visitors, and to expand exports of agricultural, forestry, and fisheries products.
Other specific steps include subsidies to curb rises in gasoline prices and electricity and gas bills and to support small and midsize companies that have lagged behind firms in raising pay and coping with labor shortages. The government will also encourage investment in strategic sectors such as semiconductors.
