(Reuters) – Japan will create a $490 billion record spending package on Friday to offset the economic impact of the COVID-19 pandemic. This is in contrast to a worldwide trend to withdraw crisis-mode stimuli measures and add strain to already strained finances.

The package of 56 trillionyen (or $490 billion) will be the first ever to be prepared by Fumio Kishida as he focuses on giving more wealth to families. Further details will be revealed by the government on Friday.

Here’s the gist based upon a draft that Reuters obtained and reports from domestic media:

KEY COMPONENTS & FUNDING

* The package will consist of four pillars: 22.1 trillion yen to ramp up hospital beds and medical supplies, 9.2 trillion yen for vaccine development and other steps to prepare for the next wave of pandemic, 19.8 trillion yen for cash payouts to households and subsidy to boost domestic chip production, and 4.6 trillion yen for public works and disaster-relief projects.

* Of the expected 55.7 trillion yen in total spending, 31.9 trillion yen will be funded by an extra budget to be submitted to parliament this year. All the rest of it will be paid in the next state budget.

* Aside from debt issuance, the government will tap 4.5 trillion yen left over in reserves for emergency pandemic spending.

COVID-19 COUNTERMEASURES

* The government will pay up to 2.5 million yen each to smaller firms that saw sales slump from the pandemic, and extend until next March financial support via state-backed loans.

* Families with children aged 18 or below will receive cash and consumption coupon payouts totalling 100,000 yen per child under a scheme that sets an annual income cap of 9.6 million yen. The government will spend approximately 2 trillion yen on this.

* Japan will resume a discount campaign promoting domestic tourism as early as in January to help hotels and airlines hit by the pandemic.

AUTOTHER SPENDING

* The government will subsidise oil refiners in hope of capping wholesale gasoline and fuel prices to cushion the blow to households and firms from rising oil costs.

* Japan plans to allocate a record 770 billion yen for defence in the extra budget amid concern over China’s military in the disputed East China Sea.

GROWTH STATEGY

* The government will create a 10 trillion yen fund for universities to spend on technological and scientific research.

* It will set aside 500 trillion yen in subsidies and craft legislation to build domestic chip factories and strengthen supply chains. The plan also seeks to encourage private investment in storage battery manufacturing.

* It will pledge to beef up tax breaks to spur companies to raise worker pay, and raise state-set wages for nurses, medical care workers and nursing home staff.

* Japan will set up a green innovation fund and pursue regulatory reform to achieve carbon neutrality in 2050.

* It will subsidise purchases of electric vehicles and pledge to have them account for all new cars sold in 2035. It will promote infrastructure development such as hydrogen and electric charging points.

* The government will strive to realise “digital” cities in which technology will make working arrangements more flexible, and develop local 5G networks, data centres and drone delivery networks.

($1 = 114.2500 yen)