Japan's Election Strategy: Cash Handouts Amid Inflation

Japan's ruling coalition is set to incorporate a proposal for cash handouts in its election campaign strategies, aiming to alleviate household struggles due to persistent inflation, according to local media reports on Tuesday. This move comes as a response to mounting pressure ahead of the upper house election in July.

Prime Minister Shigeru Ishiba's Liberal Democratic Party, alongside coalition partner Komeito, is currently in talks about the specifics of the handout plan, including both the amount and potential income eligibility criteria for recipients. 'If tax revenue exceeds expectations, it must be redistributed to all citizens,' stated a senior LDP legislator.

Previously shelved in April over concerns regarding its effectiveness, the cash handout proposal has resurfaced. This decision aligns with LDP's reluctance to heed the opposition's calls for tax reductions, which could further strain Japan's already challenged state finances.

(With inputs from agencies.)