[Japanese Cabinet Approves ¥21.3 Trillion Economic Stimulus Package]
The Japanese Cabinet on Friday approved an economic stimulus package totaling ¥21.3 trillion (approximately $135.4 billion), marking the first major policy initiative of the new government. The plan includes ¥17.7 trillion in general expenditures, significantly higher than last year’s ¥13.9 trillion level, making it Japan’s largest fiscal stimulus package since the COVID-19 pandemic. Additionally, the package features ¥2.7 trillion in tax reduction measures. As a result, the yen exchange rate fell to a 10-month low, and the yield on 40-year Japanese government bonds rose to a historic high. The issuance scale of new government bonds has yet to be determined but is expected to exceed last year’s ¥6.69 trillion. The Cabinet plans to approve a supplementary budget on November 28 and seek parliamentary approval by the end of the year.