Japan: Third stimulus package to be announced in early December

The third supplementary budget is expected to be more than 20 trillion yen (US$192 billion), and include measures to help small businesses.
By: | November 26, 2020
Topics: Compensation and Benefits | Japan | News | Restructuring

The government will finalise the amount of the stimulus package in early December, said Sankei newspaper.  

Policy research council chief Hakubun Shimomura of the ruling Liberal Democratic Party, said earlier this month that the third supplementary budget, targeted to revive he pandemic-hit economy, may be larger than 15 trillion yen (US$144 billion), while party lawmakers have called for as much as 40 trillion yen (US$385 billion). 

Prime minister Yoshihide Suga had tasked his cabinet to compile the stimulus package on November 27  to boost productivity through digitalisation and reduce greenhouse gas emissions. 

Japan has already introduced $2.2 trillion (US$21 billion) across two stimulus packages in response to COVID-19, including cash payments to households and small business loans. 

READ: Japan rises out of recession, but winter bonus down

As part of the budget, the government will give 200,000 yen (US$1,917) to each worker at hospitals treating COVID-19 patients and 100,000 yen (US$958) to each member of staff at medical institutions that have secured beds and are prepared to accept people with the respiratory disease.

Some small firms and individual proprietors that are running low on cash will be provided with aid to an upper limit of 6 million yen (US$57,513) to help them make rent payments.