Japan PM Kishida to tell cabinet to compile relief package - sources

FILE PHOTO: Japanese Prime Minister Fumio Kishida holds a news conference in Tokyo, Japan, March 16, 2022. Stanislav Kogiku/Pool via REUTERS

(This March 23 story has been refiled to remove embargo tag)

TOKYO (Reuters) - Japanese Prime Minister Fumio Kishida will likely instruct his cabinet to compile a relief package on Tuesday to cushion the economic blow from rising raw material prices, said three government sources with direct knowledge of the matter.

Spending will focus on fuel subsidies and aid to households hit by soaring raw material and food costs, said the sources, who spoke on condition of anonymity as they were not authoritised to speak publicly.

The package "could come in two stages," one of the sources said, with the initial one to be funded by roughly 5 trillion yen ($41 billion) in reserves set aside under the fiscal 2022 budget.

Details of the second package, such as whether to compile an extra budget to fund the spending, will be decided before a scheduled upper house election in the summer, the sources said.

($1 = 121.1600 yen)

(Reporting by Kentaro Sugiyama and Takaya Yamaguchi, writing by Leika Kihara; Editing by Simon Cameron-Moore)

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