Japan Approves ¥21.3 Trillion Economic Package as Bond Yields Climb on Debt Plan

Overview

• The cabinet set a total package of roughly ¥21.3 trillion, anchored by a ¥17.7 trillion supplementary general-account budget.
• Household relief includes January–March electricity and gas subsidies that cut a typical bill by about ¥7,000 and a ¥20,000 payment per child under 18 without an income test.
• Flexible local grants of about ¥2 trillion allow measures such as rice coupons or digital vouchers to offset food price increases.
• Most funding will come from deficit-covering bonds, with the 10-year JGB yield touching 1.835% this week as investors sold Japanese debt and the yen weakened.
• The plan pairs investment across 17 priority fields with faster progress toward defense outlays near 2% of GDP, while economists and editorials fault weak targeting and lawmakers prepare to scrutinize the budget.