Japan PM Kishida Announces $113 Billion Stimulus Package, Promises Wage Hikes to Combat Inflation

Stimulus includes temporary tax cuts, benefits for low-income households, and plans for wage increases in 2024; critics argue the measures may exacerbate Japan's national debt and have limited long-term economic impact.

Japanese Prime Minister Fumio Kishida announced a whopping $113 billion stimulus package including tax cuts and benefits for low-income households aimed at combating inflation and reviving the country's sluggish economy.
Kishida plans to encourage companies to increase wage hikes next year that exceed levels seen in 2023 in order to ensure that growth in household income outpaces inflation.
The plan, endorsed by Kishida's Cabinet, includes a temporary tax cut of $266 per person from June 2024, and $465 payouts to low-income households as well as subsidies for gasoline and utility bills, purporting to boost Japan’s gross domestic product by about 1.2%.
Kishida said he is determined to increase disposable income, struggling to fend off widespread skepticism against his controversial tax cut plan and allegations of attempting to cover up his support for tax increases.
Critics including Takahide Kiuchi, an executive economist at the Nomura Research Institute, and opposition lawmakers have expressed concerns that such measures might fuel Japan's national debt and have limited long-term economic benefits as they are likely to go to savings and won't change consumer behavior.