The Japanese government is set to formalize on Thursday a stimulus package worth over 17 trillion yen, or about 112 billion dollars, to shore up the economy.

It has set five goals, including tackling soaring inflation and ensuring sustained pay hikes, and says it will mobilize every policy measure to achieve them.

As a means to help counter rising prices, income and resident taxes will be cut by about 260 dollars per taxpayer and dependent. The move will be implemented as early as next June, with specific plans to be drawn up by the end of this year.

Low-income households that are exempt from resident taxes will receive about 460 dollars.

The ongoing subsidies for oil wholesalers and utility bill relief measures will be extended through April next year.

Toward the goal of ensuring sustained pay raises and bolstering the country's growth capabilities, the government will assist capital investment by small- and midsize companies to boost productivity.

It also plans to increase funding for semi-conductor production hub construction within Japan.

After the economic package is formally approved, Prime Minister Kishida Fumio is expected to give a summary at a news conference.