Japan’s draft relief measures include higher fuel aid, extra budget -Breaking
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© Reuters. FILEPHOTO: A group of businessmen wearing masks and walking on a bridge amid spread of coronavirus (COVID-19) in Tokyo’s commercial district. June 24, 2020. REUTERS/Issei KatoBy Takaya Yamaguchi
TOKYO (Reuters).- Japan’s government will increase the gasoline subsidy cap and create additional state funds to offset rising raw material prices, according to a draft of its relief plan obtained by Reuters.
According to the draft, most spending suggestions made Thursday by the ruling coalition, like cash payments to families of low income with children, will be included in the final package.
According to the draft, the government also promised to create another comprehensive package of economic support measures after having laid out an annual outline for its fiscal and long-term policy in June.
“The government must remain vigilant about the effects recent yen fall could have on household and importers,” stated the draft. Prime Minister Fumio Kishida will announce the package next week.
Kishida must increase fiscal spending in order to alleviate the burden on retailers and households from the rising cost of fuel and raw materials. This is due to the Ukraine crisis and the inflationary effects of the recent yen falls.
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