Japans draft relief measures include higher fuel aid, extra budget

div classBodysc17zpet90 cdBBJodivpBy Takaya Yamaguchip

pTOKYO Reuters Japans government will raise the cap for gasoline subsidies and replenish state reserves by compiling an extra budget to cushion the economic blow from rising raw material costs, a draft of its planned relief package obtained by Reuters showed on Friday.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThe package will incorporate most of the spending proposals made by the ruling coalition on Thursday, such as cash payments to lowincome households with children, the draft showed.p

pThe government will also pledged to compile another “comprehensive” package of measures to support the economy after laying out an annual outline of its longterm economic and fiscal policy in June, according to the draft.p

p“The government must be vigilant to the impact recent yen falls could have on households and importers,” said the draft of the package, which Prime Minister Fumio Kishidas administration is expected to announce next week.p

pKishida is under pressure to ramp up fiscal spending to ease the pain on households and retailers from rising fuel and raw material costs, driven by the crisis in Ukraine and aggravated by the inflationary effect of recent yen declines.p

p Reporting by Takaya Yamaguchi Writing by Leika KiharaEditing by ChangRan Kim and Gerry Doylep

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