The latest statement shows Japan is ready to take steps to offer further stimulus following uncertainty in economic and financial markets arising over the Ukraine crisis, policymakers said on Tuesday, with parliament approving a record state budget of $ 900 billion for next fiscal year.
The approval of the $ 900 billion budget through parliament paved the way for the administration of Prime Minister Fumio Kishida to offer another stimulus package to help households in the face of rising food and fuel bills.
The government has proposed the provision of cash payments to low -income retirees as a measure to ease the burden of the people through subsidies and tax incentives for consumers. Finance Minister Shunichi Suzuki also said he would respond as appropriate if additional measures were needed, though he noted that he had not considered for an additional stimulus budget for now.
Parliament has approved a 107.6 trillion yen ($ 900 billion) package for fiscal year 2022. Lawmakers have voiced complaints about huge spending to help ease the pressure on the world’s third-largest economy as a result of the COVID-19 pandemic.
Nevertheless, Kishida last week said the government was ready to take further steps to mitigate the impact of rising energy costs. On the other hand, the opposition party is also in line with this where the leader of the opposition party Yuichiro Tamaki has called for a new stimulus package worth 20 trillion yen on the assumption that Japan is already experiencing stagflation.
Economic growth is expected to be slightly stagnant this quarter with the outbreak of Covid-19 and the geopolitical crisis.
