The Cabinet on Tuesday approved an extra budget for the current fiscal year to spend ¥29.09 trillion on an economic package designed to mitigate the pain of rising prices on households and businesses, exacerbated by a weaker yen.
To secure the necessary funding, the government will issue bonds worth ¥22.85 trillion, putting fiscal restoration on the back burner further despite its debt already more than twice the size of its economy.
The key feature of the economic package is reducing utility bills for households. The average household would save around ¥45,000 between January and September when the package, intended to lower electricity and city gas prices on top of gasoline and kerosene, is implemented.