Japan’s Prime Minister will pay out more cash to aid pandemic hit economy

Japan’s Prime Minister Shinzo Abe faces financial pressure from his political partners on Wednesday. The prime minister was expected to disburse more cash to people to lessen financial crisis amid the virus outbreak.

The government will distribute $1 trillion worth of stimulus package including cash payouts of 300,000 yen. This is only available for families whose income was reduced because of the pandemic’s economic impact.

Some governments in other countries had also released complete payouts to its entire people as the virus crushes economies all over the world.

Natsuo Yamaguchi, head of the Komeito party and junior partner in the coalition government, advised Abe’s management to disburse 100,000 yen ($935) to every citizen.

“The pandemic is having a profound impact on social activity and the economy. I’ve urged the prime minister to make a decision and send a strong message of solidarity to the public,” Yamaguchi said after meeting Abe on Wednesday.

“It’s necessary to act as quickly as possible,” he stated.

Chief Cabinet Secretary Yoshihide Suga announced that the government would examine Yamaguchi’s request after receiving this year’s supplementary budget from parliament.

Toshihiro Nikai, a top member of Abe’s Liberal Democratic Party, urged the administration to collect a second supplementary budget to give a 100,000 yen worth cash reserves to every citizen.

The economy of Japan was already suffering because of recession even before the virus outbreak started. The pandemic affects worldwide and local interests, encouraging proponents of loose fiscal policy despite accumulating the biggest public debt among industrialized countries.

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