Japanese Cabinet Approves Economic Stimulus Package Exceeding 21 Trillion Yen
Jinse Finance reported that the Japanese Cabinet on Friday approved an economic stimulus package totaling 21.3 trillion yen (approximately $135.4 billion), marking the first major policy initiative since the new government took office. This comprehensive plan includes 17.7 trillion yen in general expenditures, far exceeding last year's 13.9 trillion yen, making it Japan's largest fiscal stimulus since the COVID-19 pandemic. In addition, the plan includes 2.7 trillion yen in tax reduction measures. However, this "lavish" spending has sparked deep concerns in the market about Japan's worsening fiscal situation. The yen exchange rate has fallen to a 10-month low, and the yield on 40-year Japanese government bonds has climbed to a historic high. According to informed sources, the scale of new government bond issuance has yet to be finalized, but it is expected to exceed last year's 6.69 trillion yen used for a similar plan. The Cabinet plans to approve the supplementary budget as early as November 28 and aims to secure parliamentary approval by the end of the year. (Golden Ten Data)
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