The Japan cash handout plan has returned as inflation keeps straining household budgets across the country. On Tuesday, two sources confirmed that Japan’s ruling coalition will include the plan in its election campaign pledges. Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP) and Komeito reached the agreement earlier this week.
They now plan to finalize the cash amount and decide whether to set an income limit for recipients. Officials expect the payments to total a few tens of thousands of yen, though no figure is final yet. The Japan cash handout plan could help the coalition gain support before the upper house election in July.
LDP leaders believe returning tax revenue to the public is the right move during economic pressure. “If tax revenue increases, it should return to all the people,” a senior LDP lawmaker told reporters. He insisted the plan may not require a new supplementary budget. The government dropped the idea in April due to doubts about its effectiveness.
However, ruling lawmakers revived it to counter calls from opposition parties for broader tax cuts. The Constitutional Democratic Party of Japan announced its own campaign pledges on the same day. Their plan includes a zero consumption tax on food for two years and 20,000 yen cash per person. They also promise to cut the gasoline tax to reduce transportation costs for struggling families.
The LDP worries that cutting taxes could harm government finances more than temporary handouts would. Even so, critics argue the Japan cash handout plan adds to the country’s already large debt burden. Japan’s public debt has already exceeded twice its gross domestic product.
Despite this, party leaders focus on short-term support to win voters’ trust. Voters remain cautious but interested in immediate relief over long-term fiscal reform. As the election nears, both sides are racing to gain public trust with economic pledges. The Japan cash handout plan now stands at the center of this heated political contest.
