The Japanese government plans to spend close to 21.9 trillion yen, or roughly 140 billion dollars, for a new economic package to encourage wage hikes and mitigate the impact of the rising cost of living.

Sources say that of that amount, 13.9 trillion yen, or nearly 90 billion dollars, will be covered by the general account.

Officials are working to set the total size of the package, including private-sector funds, at around 250 billion dollars. This is bigger than the economic measures introduced in the last year.

The package will include subsidies for electric and gas bills, set to resume in January, and a cash handout to households that are exempt from paying residential tax.

The government is compiling a supplementary budget for the current fiscal year to finance these measures.

The package also includes a plan to raise the annual income threshold for income tax from the current 1.03 million yen, or about 6,650 dollars.

The minority government has accepted a request from one of the opposition parties to raise the threshold. The matter will be discussed as part of tax system reforms.