The government has decided to use over 2 trillion yen from the fiscal 2022 reserve fund for measures to tackle inflation, according to government sources.
The plan's central pillar is to add 1.2 trillion yen to the extant temporary subsidies for regional development, allowing local governments to establish flexible measures tailored to regional conditions.
The decision will be finalized Wednesday at the earliest at a meeting of the headquarters for comprehensive measures on prices, wages and livelihoods, chaired by Prime Minister Fumio Kishida, the sources said.
