Japan will cut household electricity bills by about 20% early next year as an inflation-relief step under a broader economic package that will involve nearly ¥30 trillion ($204 billion) in government spending, sources familiar with the matter have said.

The size of the package, which is scheduled to be unveiled Friday, will likely exceed ¥67 trillion, including spending by municipal governments and companies, the sources said.

The amount of government outlay was raised from ¥25.1 trillion planned earlier amid calls from ruling lawmakers, they said.