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Japan Confirms ¥17 Trillion-Plus Stimulus With Cabinet Approval Targeted Nov. 21

The plan answers a Q3 slump through household relief plus strategic industry funding.

Overview

  • Finance Minister Satsuki Katayama said the package exceeds ¥17 trillion (about $110 billion) following consultations with Prime Minister Sanae Takaichi.
  • Cabinet approval is scheduled for November 21 during the extraordinary Diet session, setting up rapid enactment once lawmakers vote.
  • Government sources say winter electricity and gas subsidies of roughly ¥6,000 per household are planned for January to March, with design details still being finalized.
  • The measures combine cash support and tax relief, and reports indicate total household support could reach about ¥50,000 when factoring in fuel tax changes and income tax cuts.
  • Targeted investment will prioritize AI and advanced semiconductors and includes a shipbuilding roadmap with around ¥1 trillion in public and private funding, while analysts expect yen pressure and potential flows to risk assets as the BOJ weighs a rate hike.