Prime Minister Shinzo Abe and the Liberal Democratic Party in the Japanese parliament agreed to allow the government to spend 300,000 yen to help each household lose income because of the Covid-19 epidemic.
Fumio Kishida, on April 3, revealed the deal to the media after meeting Prime Minister Shinzo Abe.
According to Kyodo, about 10 million households in Japan are expected to qualify for cash support of up to 300,000 yen (about US $ 2,800) per household. This is the mainstay of the emergency stimulus package that the Japanese government plans to draft next week, according to some officials.
The cash assistance program will be deducted from an additional budget for this fiscal year. Prime Minister Abe wants a congressional budget approved before the Golden Week holiday in early May.
The support amount for households is not subject to income tax. Mr. Yasutoshi Nishimura, Minister of Economic and Fiscal Policy, said that money will not be distributed based on household income limits because verification would take too much time.
He said the beneficiaries will be those who have difficult livelihoods due to disease. Civil servants, politicians, leaders of large corporations not affected by significant economic will not be supported in cash.
The Government will set specific criteria for the level of income damage to approve applications, as well as the application process at the local government.
Prime Minister Abe stressed that he would support “as soon as possible” not only Japanese families but also small and medium business owners who are losing revenue.
He said the corona virus pandemic’s budget package will be bigger than the 56,800 billion yen package in 2009 after the global financial crisis.
The LDP has called on the Japanese government to provide a support package of 60 trillion yen, of which 20,000 billion yen will be fiscal spending.