Economic Measures for Overcoming COVID-19 and Opening Up a New Era（November 19th, 2021, Cabinet decision）

uWhile the Japanese economy remains in a severe situation due to the COVID-19, the number of new cases has decreased andrestrictions on behavior have been gradually eased.
uTaking advantage of this situation, we will make every effort to resume a nearly normal level of socio-economic activities which
coexist with COVID-19 as soon as possible through these economic measures. We will launch the “New Form of Capitalism" andrealize the “Virtuous Cycle of Growth and Distribution” putting the economy back on a self-sustaining growth path.
uIn order to maintain this momentum for growth, we must take all possible measures to manage the crisis in preparation for thepossibility of the spread of infections, and prevent the economy from further falling out by paying close attention to thedownside risks such as a resurgence of infections and supply constraints.
Ⅰ. Preventing the spread of COVID-19

Ⅱ. Resuming socio-economic activities in the “coexisting with COVID-19”
environment and preparing for the next crisis1. Ensuring the medical care provision systemu Strengthening of the medical care provision systemu Promoting vaccination, improving testing, and securing therapeuticmedicinesu Thorough infection prevention measures

2. Support for the businesses and livelihoods of peopleu Support for businesses ◆ Support for daily life and livelihoods
u Measures against rising energy prices

1. Resuming socio-economic activities with ensured safety and security
u Utilization of vaccine and testing packages◆ Resumption of socio-economic activities

2. Further strengthening of emergency response for infectious diseasesu Domestic development of vaccines and therapeutic medicinesu International cooperation for the containment of infectious diseasesu Timely & proper implementation of reserve funds for countermeasures against COVID-19

Ⅲ. Launching "New Form of Capitalism" to open up a future societyDistribution Strategy
1. Strong support for reinforcing distribution in private sector

Growth Strategy
1. Realizing a Science and Technology Nation

2. “Vision for Digital Garden City Nation” for revitalizing
localities and connecting them to the worldu Promotion of wage increases
u Strong promotion of smooth labor mobility and human resource developmentu Enhancement of various ways of working through work style reforms and support
for diverse human resources

3. Economic security

u Raising incomes of those working for nursing, long-term care, child care, and earlychildhood educationu Promoting support for children and child-rearing◆ Science and Technology ◆ Clean energy ◆ Start-up support◆ Digital implementation ◆ DX promotion◆ Agriculture, tourism, culture, and the arts ◆ SMEs

2. Strengthening the distribution function in the public sector

Ⅳ. Ensuring safety and security through promotion of disaster risk reduction and enhancement of national resilience, etc.
Size ofeconomicmeasures(trillion yen)

ⅠⅡⅢ

Ⅳ

Total

Fiscal expenditure

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９．２

１９．８

４．６

５５．７

Project scale

３５．１

１０．７

２８．２

５．０

７８．９

Impact ofEconomic
measures

Estimated increase
in GDP
５．６％

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Ⅰ.
thespread
ofof
COVID-19
Ⅰ.Preventing
Preventing
thespread
COVID-19
Ensuring the medical care provision system•••

Strengthening medical care provision by ensuring that at least 80% of the hospital beds areoperational at times of increased infection, implementing thorough measures for patients athome or accommodation facilities in collaboration with local medical institutions, etc.
Promoting vaccination, improving testing and securing therapeutic medicines throughproviding free-of-charge booster vaccinations, securing therapeutic medicines (neutralizing
antibodies and oral drugs) and establishing a system to administer themThorough implementation of infection prevention measures by supporting measures taken by
prefectures through local revitalization grants, measures taken by kindergarten, child carefacilities and schools, etc.

Support for businesses•Grant for business reconstruction according to business scale, regardless of area or type ofbusiness, Extension of financial support including concessional (interest free) loans, and local
revitalization grants for businesses accepting shorter opening hours

Support for daily life and livelihoods•

Benefits for households exempt from residential tax (providing 100,000 yen per household),
support for students in distress, extension of special measures for employment adjustment
subsidies, and support for those suffering from loneliness and isolation

Measures against rising energy prices•

Support for agriculture, fishery, transportation, and other related industries and people in need2

Ⅱ. Resuming socio-economic activities in the “coexisting with COVID-19”
environment and preparing for the next crisis
Resuming socio-economic activities with ensured safety and security•

Utilizing a vaccine and test package: Developing electronic certificate of vaccination by the endof this year, and providing tests such as PCR and qualitative antigen tests without appointment
nor payment•

Restarting socio-economic activities: Stimulating demand by implementing “Go-To Travel”
campaign in consideration for safety and security, and supporting event hosting and cancellation
costs, etc.

Further strengthening of emergency response for infectious diseases•

Domestic development of vaccines and therapeutic medicines: Establishing a system tosupport from R&D to utilization of vaccines and therapeutic medicines to ensure stableproduction and supply, and supporting the development of dual-use facilities that could be used
to manufacture vaccines in emergencies•

International cooperation for the containment of infectious diseases: Supporting developing
countries through the COVAX Facility, assisting Asia-Pacific regions combating COVID-19 andrestarting socio-economic activities, and normalizing cross-border travels•

Timely and proper implementation of reserve funds for countermeasures against COVID-193

Ⅲ. “New Form of Capitalism” : Growth Strategy
Realizing a Science and Technology Nation•••

Science and Technology: Establishing the University Endowment Fund with $100 billion in 2021
FY, fostering young researchers, and promoting R&D of advanced science and technology in thefield of digital, green, AI, quantum, biology, space and oceans, etc.
Clean energy: Promoting the automobile electrification, large-scale investment to secure thedomestic production system for storage batteries and semiconductors, and further expanding theintroduction of renewable energy through developing photovoltaic power system, etc.
Support for start-up: Strengthening the functions of innovation ecosystems and enhancing open
innovation promotion tax“Vision for Digital Garden City Nation” for revitalizing localities and connecting them to the world••••

Digital implementation: Development of digital infrastructure such as local 5G, large-scale grants
to promote digital implementation such as teleworking and drone delivery, and measures against
the digital divide including nationwide deployment of digital transformation facilitators
Promoting DX: Promoting data utilization in quasi-public sectors (e.g. health, medical care, longterm care, and education) spearheaded by the Digital Agency , making administrative procedures
online, and providing at most 20,000 yen worth of My Number Card Points
Agriculture, tourism, and culture and the arts: Strengthening exports and productions inagriculture, forestry and fisheries, adding values to tourism, and promoting culture and the arts
SMEs: Support for business restructuring and productivity improvement, and encouragement ofbusiness revitalization by developing private liquidation guidelines

Economic security•

Creation of a fund to support the establishment of domestic production bases for advanced
semiconductors and the realization of advanced key technologies

4Ⅲ. “New Form of Capitalism” : Distribution Strategy
Strong support for reinforcing distribution in the private sector•••

Promotion of wage increases: Further reinforcing tax support for companies that raise wages,
strengthening supervision of subcontract transactions, and expanding subsidies to businesses
that raise minimum wages
Strong promotion of smooth labour mobility and human resource development (a 400billion-yen package over three years) : Enhance labour mobility and career advancement by
combining vocational training and outplacement support, strengthening human resource
development in digital field, and improving recurrent education and vocational training
Enhancement of various ways of working through work style reforms and support for diverse
human resources, etc.: Establishment of telework, promotion of second and side jobs, support
for women and employment ice age generation, and improvement of the treatment for nonregular workers

Strengthening the distribution function in the public sector••Raising incomes of those working for nursing, long-term care, child care, and early childhood
education: Fundamental review of public prices, front-loading of income increase for childcare
workers, kindergarten teachers, caregivers, etc. ahead of private sector wage negotiations, andsupport for developing and securing medical and social welfare personnel
Promoting support for children and child-rearing: Benefits to households with children amid theprolonged impacts of COVID-19 (100,000 yen per child), development of childcare facilities aiming
to eliminate children on waiting lists, and support for housing acquisition by households withchildren

5Ⅳ. Ensuring safety and security through promotion of disasterrisk reduction and enhancement of national resilience, etc.
Promoting disaster risk reduction and enhancing national resilience•Strengthening disaster risk reduction and enhancing national resilience based on the “Five-YearAcceleration Measures”

Accelerating recovery and reconstruction from natural disasters•

Decommissioning of TEPCO's Fukushima Daiichi Nuclear Power Station, measures against
rumor-based adverse impacts on reputation regarding ALPS treated water, and reconstructing
the livelihoods of victims of natural disasters

Ensuring safety and security of the people, including by securing national security••

Self-Defense Force’s immediate response to a changing international environment,
Promoting of the strategic coast guard system, etc.
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