Japan mulls new $90 billion stimulus package

Japanese public broadcaster NHK said on Monday the government was considering pumping 13.9 trillion yen ($89.7 billion) into a new stimulus package aimed at easing the impact of rising prices on households.

The proposed spending would exceed the 13.2 trillion yen allocated for economic stimulus last year and is expected to further strain already stretched public finances, with debt now twice the size of Japan’s economy.

The package also includes about 8 trillion yen for government investment and lending, as well as local government spending, bringing the total to 39 trillion yen when private financing is included, NHK said, citing sources.

The stimulus package would include 30,000 yen ($193) for low-income households exempt from housing taxes and 20,000 yen for families with a child, people familiar with the matter said.

The package was made possible after the ruling coalition and a main opposition party agreed on a draft on Wednesday.