2 days ago
Japan ruling bloc aiming for 30,000-40,000 yen cash handouts per person
TOKYO -- Japan's government and ruling coalition parties are considering individual cash handouts of around 30,000-40,000 yen (some $206-$275) in response to fast-rising consumer prices, the Mainichi Shimbun has learned.
Higher amounts are being considered for those with low incomes, but the exact amount will be decided once funding resources such as the tax revenue surplus are fully known, multiple ruling coalition and government sources revealed June 10.
After a cash handout initiative was shelved in April amid criticism from opposition parties who called it "pork-barrel spending" and lackluster public opinion ratings in media polls, the government and ruling parties are mulling a plan to give higher cash benefits to low-income earners.
The amount of benefits will depend on national tax revenues to be determined in July and how progressively they will favor those with low incomes, but one or more sources connected with the government indicated that 40,000 yen appears to be the baseline.
Komeito, the ruling Liberal Democratic Party (LDP)'s junior coalition partner, has advocated using "Myna Points," a government-run digital point system, to encourage spending and prevent the cash benefits from being saved. However, many in the LDP prefer direct cash payouts. Masaji Matsuyama, secretary-general of the LDP in the House of Councillors, said at a press conference on June 10, "Cash handouts are ideal to give fast support to people suffering from high prices."
Both the LDP and Komeito policy chiefs are scheduled to discuss details such as the exact amount and method of distributing the benefits. Following Komeito's public announcement, the LDP also plans to include the benefit proposal in its campaign pledges for the July House of Councillors election.
The secretary-generals for both parties, the LDP's Hiroshi Moriyama and Komeito's Makoto Nishida, held talks that day in Tokyo where they agreed to carry out measures such as cash handouts to counter rising prices. Tetsushi Sakamoto, LDP Diet Affairs Committee chief, who was present at the meeting, afterward told reporters, "We felt it wouldn't make sense not to return excess tax revenues to the public. This is a pledge for the upper house election."
Nishida also stated at a press conference the same day that it would be "preferable" for the benefits to be distributed within the year.
