Japanese cabinet approves stimulus package of more than 21 trillion yen

Japan's cabinet on Friday approved an economic stimulus package worth 21.30 trillion yen (about $135.40 billion), the first major policy move by the new government. The package includes general spending of 17.70 trillion yen, well above last year's level of 13.90 trillion yen, making it the largest fiscal stimulus in Japan since the COVID-19 pandemic. It also includes tax cuts of 2.70 trillion yen. However, the "lavish" spending has raised deep concerns about Japan's deteriorating fiscal position. The yen fell to a 10-month low and the yield on 40-year Japanese government bonds climbed to a record high. The size of the new government bond issuance is still to be finalised, but it is expected to exceed the 6.69 trillion yen spent on a similar scheme last year, according to people familiar with the matter. The cabinet plans to approve a supplementary budget as early as November 28 and aims to pass it by parliament by the end of the year. (Jin Ten)