Japan Approves $250 Billion Stimulus Package to Boost Wages and Growth

The plan, led by Prime Minister Shigeru Ishiba, aims to address inflation, low birthrates, and economic challenges while facing political hurdles in parliament.

The Japanese government has approved a 39 trillion yen ($250 billion) economic stimulus package to spur wage growth, support households, and drive innovation.
Key measures include energy and fuel subsidies, cash handouts for low-income households, and support for digital innovation and regional economies.
The package raises the proposed annual tax-free salary threshold, with the goal of encouraging part-time workers to increase their hours and earnings.
Critics warn the plan could deepen Japan's already significant national debt, which exceeds 200% of GDP, and strain public finances as the population ages.
Prime Minister Ishiba's minority government faces challenges in securing parliamentary approval after losing its majority in the lower house in October's election.