"Given the current situation, where wage increases are not keeping pace with the price growth, it is necessary to provide support to the population as a temporary measure, and we have developed effective measures for this. We intend to implement them for the population as quickly as possible," the Japanese prime minister told a cabinet meeting.
About 13 trillion yen as part of the supplementary budget package will be used to support the population, with low-income families expected to receive payments of 70,000 yen, Kishida said, adding that another 3 trillion yen would be spent on measures of temporary tax burden reduction.
In September, the Japanese prime minister said that the next three years would become a "period of transformation" from an economy based on cost reduction to a model that would focus on labor market growth, higher wages and consumption levels, increased digitalization and support for start-ups. He also said that the government would concentrate on five directions – combating inflation, raising wages and boosting regional development, promoting domestic investment, increasing birthrate, and strengthening population safety.