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Japan PM eyes 'powerful' inflation-relief steps after budget enacted
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| Kemarin, 20:00
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TOKYO (Kyodo) -- Prime Minister Shigeru Ishiba said Tuesday that the government wants to implement "powerful" inflation relief measures as Japanese households grapple with rising prices, particularly for staple food rice.
Ishiba, also the leader of the ruling Liberal Democratic Party, told Tetsuo Saito, head of the Komeito party, the LDP's junior coalition partner, that the measures will come after parliament approves a draft budget for the next fiscal year starting April, Saito told reporters after his meeting with the prime minister.
While details are still being finalized, Saito said the measures are expected to include support to ease the burden of rising rice prices. The possible abolition of a gasoline surcharge, as demanded by opposition parties, will be on the agenda.
Existing subsidies designed to reduce electricity and city gas bills will likely be extended beyond April, a government source said, adding that the government would use reserve funds earmarked in the state budget for emergency use.
Chief Cabinet Secretary Yoshimasa Hayashi, the top government spokesman, said Ishiba's comments do not mean a new budget will be needed.
Ishiba has seen public support for his Cabinet dive since he acknowledged that he had handed out gift vouchers worth 100,000 yen ($670) each to rookie lower house LDP lawmakers.
While he sees no legal issues with the practice, he told parliament it was out of step with public sentiment as households struggle with the ongoing cost-of-living crisis. Sluggish public support poses a risk ahead of key elections this summer -- one for the Tokyo metropolitan assembly and the other for the House of Councillors.
Rice prices remain high partly due to a poor harvest, prompting the government to release some of its emergency stockpiles. The surge has added to the entrenched cost-push inflation squeezing households, with a weak yen further driving up import costs for the resource-scarce nation.
Political maneuvering is intensifying as the ruling coalition seeks to ensure the fiscal 2025 budget is enacted in time for the April start of the new year.
Opposition parties have been pushing for more Diet deliberations on the budget plan, saying they have had to use time questioning Ishiba over the controversial distribution of gift vouchers to ruling party members. Evidence has surfaced suggesting the practice may have been long-standing among LDP prime ministers.
As head of a minority government, Ishiba has underscored the need for policy consultations and coordination with opposition parties.
The ruling coalition and the Democratic Party for the People, an opposition party that has seen its influence grow in parliament, agreed to work toward scrapping the gasoline surcharge. No exact timing has been set for the abolishment.
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