- Government pays 100,000 yen per child – Yomiuri
- Government draws on reserves to pay the cost -Yomiuri
TOKYO, Nov. 5 (Reuters) – Japan will spend around 2 trillion yen ($ 18 billion) on cash payments to households with children under the age of 18 as part of a stimulus package to mitigate the effects of the COVID-19 pandemic. The Yomiuri newspaper reported on Friday.
Under the plan, households entitled to 100,000 yen per child regardless of household income by the spring of next year will be entitled to 100,000 yen per child, the newspaper said without citing the source.
The government will tap into its reserves in the state coffers to fund the cash disbursements, the paper said, suggesting that the plan will not result in a huge spending of national debt.
New Prime Minister Fumio Kishida’s government is also considering offering cash payments to low-income households and temporary workers, the newspaper said, adding that details would be worked out by the ruling party.
“Compared to the previous flat-rate payout that covered all households, this time there could be more money going into consumer spending because it targets those who need cash,” said Masato Koike, chief economist at the Dai-ichi Life Research Institute.
Kishida has promised to put together a major stimulus package this month, and the government aims to have it passed by parliament by the end of this year. However, Kishida has provided little indication of the potential amount of spending and the amount of additional debt.
“The Prime Minister has repeatedly said that the government is ready to offer payouts to those suffering from the pandemic. Discussions will continue on the basis of this understanding,” Economy Minister Daishiro Yamagiwa told reporters on Friday when asked about Yomiuri’s report.
The idea of offering cash to households with children was a campaign promise made by Komeito, a coalition partner of Kishida’s Liberal Democratic Party, ahead of the October 31 parliamentary elections. It is a little different from Kishida’s request for targeted payouts to those who need help the most.
($ 1 = 113.6900 yen)
Reporting by Chang-Ran Kim, Elaine Lies, and Kantaro Komiya; Writing by Leika Kihara; Editing by Gerry Doyle and Edwina Gibbs
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