Japan Is Set to Unveil Largest Spending Plan Since Pandemic Era

Japan’s pro-stimulus Prime Minister Sanae Takaichi is set to unveil the largest spending plan since the pandemic era, in a move that adds to her reputation for expansive fiscal policy while putting bond vigilantes on notice.

Her stimulus package will include ¥17.7 trillion ($112 billion) of spending through what will essentially be the extra budget, according to documents seen by Bloomberg Thursday. That marks a jump from the ¥13.9 trillion former Prime Minister Shigeru Ishiba unveiled last year. Given the larger size, additional bond issuance will also be bigger than last year, according to people with knowledge of the matter — putting more pressure on the country’s finances.