TOKYO: Japan’s ruling coalition agreed on Tuesday to include a plan to distribute cash handouts in their election campaign pledges to help households cope with persistent inflation, media reported on Tuesday.

The handout plan could add to concerns over the government’s already tattered finances, as lawmakers scramble to appease voters ahead of an upper house election set for July.

Prime Minister ISHIBA Shigeru’s Liberal Democratic Party (LDP) and its junior ruling coalition partner Komeito will discuss details of the plan, including the amount and whether to have an income threshold for recipients, according to local media.

“If tax revenue rises (above projections), it has to be returned to all the people,” a senior LDP lawmaker told reporters on Tuesday.

The government shelved the idea of cash handouts in April as questions arose over the effectiveness of the handouts. But the plan has come back as the LDP resists growing calls from some opposition parties for tax cuts, which could weigh on the state finances more heavily. 

Reuters