ISTANBUL

The Japanese government is planning to issue an economic package worth over 20 trillion yen ($129 billion) to support citizens against increasing living costs.

The supportive measures, such as a gasoline tax cut, are expected to be accepted by the Cabinet on Friday, Kyodo News reported on Wednesday.

The amount of the extra budget is expected to reach 17 trillion yen ($109.2 million), well above last year's 13.9 trillion yen ($89.3 million).

The Japanese economy shrank for the first time in the last six quarters during the July-September period, with consumer spending slowing due to higher prices.

As part of the package, the government aims to provide subsidies for electricity and gas bills for the first three months of next year.

The package will also include financial assistance for local governments to implement their own measures, such as rice vouchers, to deal with rising prices.