Japan Eyeing Economic Package Topping 20 T. Yen

Summary

The Japanese government plans a comprehensive economic package likely exceeding 20 trillion yen, expanding from an initial target of around 17 trillion yen. The package includes large-scale tax cuts, such as abolishing provisional gasoline and gas oil surcharges, and additional anti-inflation measures like increased child allowances. Cabinet approval could come as early as Friday. General-account expenditures for the FY2025 supplementary budget are projected at around 17 trillion yen, the highest since the COVID-19 pandemic era. The one-time child allowance increase is 20,000 yen per child (0–18 years), with about 400 billion yen needed to cover costs.

“The package, including the abolition of the provisional gasoline and gas oil tax surcharges and other large-scale tax reductions, is expected to be adopted at a cabinet meeting as early as Friday.”

The information indicates a shift upward from the initial 17 trillion yen estimate as broader anti-inflation measures are incorporated into the package.

Details

Projected value: over 20 trillion yen
Key components: large-scale tax reductions, gasoline and gas oil surcharge abolition
Anti-inflation measures: additional child allowances
FY2025 supplementary budget: around 17 trillion yen in general-account expenditures
Comparison: FY2024 extra budget: about 13.9 trillion yen
Child allowances: increase of 20,000 yen per child (0–18); total cost ≈ 400 billion yen

Context

The package aims to bolster domestic demand and counter inflation pressures, reflecting a shift toward expansive fiscal measures in Japan’s economic policy.

Copyright The Jiji Press, Ltd.

nippon.com — 2025-11-19

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