The Japanese government on the 16th began formal discussions on a ¥17 TRILLION (USD 110 billion) economic package, which is one of the largest fiscal interventions in recent years.
? JAPAN PREPARES A MASSIVE ¥17 TRILLION STIMULUS PACKAGE ??
Japan is planning a ¥17 trillion ($110B) economic stimulus to boost growth and fight slowdown.
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The plan, equivalent to roughly 3% of Japan’s GDP, is being crafted under the new administration of Prime Minister Sanae Takaichi, inaugurated in October 2025.
To fund the package, the government is preparing a supplementary budget of roughly USD 93 billion, exceeding last year’s level. Officials aim to finalize the measures by November 21, making it the first major test of the new government’s economic direction.
Japan Economic Pressures Driving the New Stimulus Plan
Several structural and immediate challenges are pushing Japan toward this large-scale fiscal response:
Persistent inflation hitting households
Rising prices remain the top concern for the new administration. Providing rapid household support, including tax cuts and utility subsidies, is a central priority.
Limited economic growth despite years of monetary easing
Japan’s long-running ultra-loose monetary policy has failed to produce stable, long-term growth. Policymakers are now shifting toward fiscal spending as a growth engine.
Growing geopolitical risks tied to China
Japan is facing heightened regional security concerns amid China’s expanding influence. As a result, the package will likely include increased defense-related spending.
Demographic pressures and productivity challenges
With an aging population and a shrinking workforce, the government is planning new investments in technology and productivity-enhancing infrastructure.
Key Measures Under Consideration
The economic package aims to balance immediate relief with long-term strategic investment:
Income tax cuts to ease household burdens
Reduced gasoline taxes to offset rising transport and energy costs
Direct subsidies for electricity and heating bills
Strategic investments in:
Artificial intelligence
Semiconductors
Shipbuilding and industrial infrastructure
Other national security–critical technologies
Lawmakers are also negotiating within the ruling coalition, and insiders say the total package may be expanded to as much as USD 130 billion.
The Ministry of Finance is now working to balance the new spending with Japan’s already high public debt load. It would be a massive news for all crypto assets.
