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Japan to craft stimulus package worth 13 tril. yen: sources

In this May 1, 2019 photo, Japanese prime minister's office, right, and the prime minister's official residence, left, are seen in Tokyo's Chiyoda Ward. (Mainichi/Masahiro Kawata)

TOKYO (Kyodo) -- Japan plans to craft a stimulus package worth around 13 trillion yen ($119 billion) to help shore up the economy and build stronger infrastructure to mitigate damage from natural disasters, government sources said Tuesday.

Of the total, public investment will account for around 6 trillion yen, the sources said, adding the economic package is expected to be approved by Cabinet members on Thursday.

Following a Liberal Democratic Party meeting on economic measures, Fumio Kishida, policy chief of the ruling party, confirmed that the scale of the package will "far exceed 10 trillion yen," while declining to specify the exact figure.

Combined with expenditures by the private sector, the scale of the first economic package in three years is expected to top 25 trillion yen, according to the sources.

The previous stimulus package compiled in August 2016 totaled 28.1 trillion yen, including 6.2 trillion yen from the state.

Of the stimulus steps, around 7.5 trillion yen will be financed by an extra budget for fiscal 2019 and an initial budget for fiscal 2020, both of which will be drafted later this month.

Local governments will be expected to shoulder more than 1.5 trillion yen, while over 3.5 trillion yen will likely be covered by the state investment and loan program for infrastructure development and other projects.

Last month, Abe instructed ministers to formulate an economic package after disasters such as Typhoon Hagibis ripped through wide areas of Japan in October, killing more than 90 people. The stimulus is also aimed at alleviating the negative impact of the Oct. 1 consumption tax hike to 10 percent from 8 percent.

Kishida said the planned stimulus measures include developing highly advanced post-5G wireless network technologies and supplying more computers to public schools.

The government is also considering giving shopping reward points to "My Number" ID cardholders as part of efforts to spread the system, which remains unpopular since being introduced in 2016.

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