Japanese Prime Minister Kishida Fumio plans to release on Monday the pillars of a new economic package expected to be aimed at helping households deal with rising prices and smaller firms raise wages.

Kishida said last week that he would present measures to address rapidly rising prices and boost momentum for wage hikes as well as investment expansion.

Kishida plans to instruct his relevant Cabinet ministers on Tuesday to draw up specific measures. The government is also expected to work with the ruling parties to finalize the package next month or later.

Points of discussion are likely to include reducing the financial burden on households, assisting small and midsized firms in increasing wages, and devising tax incentives to encourage investment in semiconductors and other key materials.

The government will have to draft a supplementary budget to bankroll the economic package. Kishida said he would order an extra budget to be drawn up and be submitted to the Diet at an appropriate time after concrete economic measures were decided.

Some officials from the government and ruling parties are calling for a significant budget. But others say fiscal discipline should be maintained.