Global Economics

Japan board to recommend stimulus package blueprint in early Nov

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According to the economy minister, a commission led by Japanese Prime Minister Fumio Kishida would draught a proposal for a stimulus package targeted at mitigating the economic impact of the coronavirus pandemic in early November.

The proposal will also include a roadmap of long term policy targets, such as strengthening supply chains, encouraging innovation, and redistributing wealth to low-income households.

“The proposal will include some steps that go into the stimulus package,” Economy Minister Daishiro Yamagiwa told reporters after the panel’s first meeting.

“It could also touch upon issues related to tax,” he added without elaborating. Kishida convened the panel to discuss how to advance his vision of a new-style capitalism that would reduce wealth gaps in Japan.

He had earlier stated that a stimulus package focusing on relief to households and businesses affected by COVID-19 will be put together by the end of the year and would be worth “many tens of trillion yen.”

Discussions around the spending package and broader reforms are set to heat up following a lower house election on Oct. 31 in which Kishida aims to win big enough to garner enough political capital to push through his policy priorities.

Story by : Norvisi Mawunyegah