Japanese government officials debate new cash transfers to help poor people cope with pandemic: sources
TOKYO (Reuters) – Japan’s government and ruling party officials are discussing possible additional cash payments to low-income households to help them cope with the coronavirus pandemic, two sources with knowledge told Reuters on Monday. directly from the case.
The amount of the potential payout has not been set, but government spending is likely to be much lower than a previous package that offered cash payments of 100,000 yen ($940) to all citizens, the sources said, who were not allowed to speak to the media. and spoke on condition of anonymity.
Previous cash payments cost the government 12.9 trillion yen ($120 billion), which was funded by deficit-covering bonds.
The talks come after some ruling party lawmakers, concerned about job losses and suicides, called for cash payments of 100,000 yen for the poor. They also recommended more support for childcare and provision of rice and other basic items.
Chief Cabinet Secretary Katsunobu Kato said the government was not considering providing further cash assistance to those in need as various support measures including employment and housing were already available.
The government and the ruling bloc aim to work out new economic measures after the approval of next fiscal year’s budget by parliament, the sources said.
Finance Minister Taro Aso has so far resisted further spending, arguing that the government’s immediate objective is to enact the budget and that emergency reserves could be tapped if needed.
Japan has the heaviest public debt burden in the industrial world and tax hawks are wary of cash payouts, which could turn into savings rather than being spent to stimulate the economy.
($1 = 106.6000 yen)
Reporting by Yoshifumi Takemoto; Written by Tetsushi Kajimoto; Editing by Edwina Gibbs and Kenneth Maxwell