The Japanese Cabinet approved a package economic stimulus plan worth over 21 trillion yen.

PANews, November 21 - The Japanese Cabinet approved an economic stimulus plan worth 21.3 trillion yen (approximately 135.4 billion USD) on Friday, marking the first major policy initiative since the new government took office. This package includes 17.7 trillion yen in general spending, far exceeding last year's level of 13.9 trillion yen, making it Japan's largest fiscal stimulus since the COVID-19 pandemic. Additionally, the plan includes 2.7 trillion yen in tax reduction measures. However, this “lavish” spending has sparked deep concerns in the market about Japan's deteriorating fiscal situation. The yen's exchange rate has fallen to a 10-month low, and the yield on 40-year Japanese government bonds has climbed to a historic high. Insiders revealed that the size of new government bond issuance is yet to be finalized, but it is expected to exceed last year's 6.69 trillion yen for similar plans. The Cabinet plans to approve a supplementary budget as early as November 28 and aims to secure parliamentary approval before the end of the year.