Japan’s economic stimulus package is expected to include tax cuts to spur focused investment in 17 key sectors, including AI and semiconductors, and multi-year budget allocations to make policy more predictable, the Nikkei newspaper reported.
Prime Minister Sanae Takaichi is expected to outline the structure of the plan when a panel at the government’s new economic strategy headquarters — a policy command center aimed at revitalizing the country’s industrial base — meets on Monday, the business newspaper said.
The next stimulus package will be Takaichi’s first major economic initiative since she, an advocate of big fiscal spending, took office last month.
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Sources told Reuters in October that the package will likely exceed last year’s $92 billion plan and will be built around three pillars, with measures to combat inflation, investment in growing industries and national security.
Takaichi’s government has not yet detailed a financing plan for the initiative, which it hopes to boost growth in the world’s fourth-largest economy.
A total of 17 strategic sectors have been designated for focused investments, which also include shipbuilding, aerospace and defense.
Government officials could not be reached for comment outside business hours.
