Japan to consider re-introducing gas and electricity subsidies, sources say
EWJ•Japan’s government will consider re-introducing gas and electricity subsidies in December, two government sources said. The country has spent about 5.6 trillion yen ($35.6 billion) on the subsidies since 2023; officials may use budget reserves or consider an extra budget to fund them.
1. Subsidies under consideration
Japan’s government will consider re-introducing gas and electricity subsidies in December after the previous program expired in September, two government sources said. The measure would aim to cushion households from rising living costs, but would likely strain public finances.
2. Possible funding and costs
The government could use reserves in this year’s budget and consider an extra budget if those funds are insufficient, the sources said. Japan has spent about 5.6 trillion yen ($35.6 billion) on utility subsidies since introducing them in 2023. The proposal could also cast doubt on Prime Minister Sanae Takaichi’s pledge to maintain fiscal discipline while pursuing spending plans, including investment in growth areas and a two-year consumption tax cut.
