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2 Minute Read by TOKYO, Japan (Reuters) – According to public broadcaster NHK, Japan’s ruling party policy leader is considering a one-time cash compensation of 100,000 yen ($901.55) to low-income individuals to help alleviate widening socioeconomic disparities created by the coronavirus pandemic. Passers-by in Tokyo, Japan, April 22, 2021, wear safety masks as they stroll down the street during the coronavirus illness (COVID-19) outbreak. Androniki Christodoulou/FILES/REUTERS The head of the Liberal Democratic Party’s policy research council, Hakubun Shimomura, said he would propose to the administration that the cash payout be included in a new economic package and made part of the party’s general election commitment. The general election is expected to take place later this year. The heavyweight of the Liberal Democratic Party’s comment raises the specter of yet another large-scale fiscal stimulus at a time when the economy needs it most. Taro Aso, Japan’s finance minister, has expressed alarm over the country’s large debt load. According to NHK, Shimomura stated it would be difficult for non-regular workers and single parent households to survive the pandemic without financial assistance. Aso, on the other hand, has been a vocal opponent of uniform monetary transfers, claiming that they would leave future generations with nothing but debt. Economy Minister Yasutoshi Nishimura left the door open to a future increased spending plan. “We have 4 trillion yen in coronavirus emergency reserves left,” Nishimura said during a cabinet meeting. “We will respond flexibly to take required steps while keeping an eye on the economic situation.” Because of tax overshoot from the previous fiscal year, as well as front-loading the issuance of rollover bonds and sales of treasury bills, Japan could create an extra budget of around 10 trillion yen without issuing additional interest-bearing bonds, according to Chotaro Morita, chief bond strategist at SMBC Nikko Securities. Any more expenditure would likely necessitate new borrowing, which would add to the industrial world’s largest debt, which is more than twice the size of Japan’s $5 trillion GDP, and would come after a $3 trillion COVID-19 stimulus package was implemented last year. (1 dollar Equals 110.9200 yen) Tetsushi Kajimoto contributed reporting, while Jane Wardell and Shri Navaratnam edited the piece./nRead More

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