The Japanese government has decided on a new economic package worth around 39 trillion yen, or a quarter of a trillion dollars, focused on tackling inflation.

The main pillars include ensuring growth for the entire nation and for local economies. Others are intended to beat the rising cost of living and give people a sense of security.

The package includes subsidies for power and gas bills, a cash handout to households exempt from paying residential tax, and assistance to areas affected by the January 1 Noto Peninsula earthquake.

Prime Minister Ishiba Shigeru said on Friday: "In order for the people to realize that their lives have become more prosperous, it's important to increase wages and incomes today and in the future. To that end, the package aims to transform Japan from a cost-cutting economy to a high value-added economy."

The price tag for the economic package is around 21.9 trillion yen, or roughly 140 billion dollars. When private sector funds are included, the total comes to some 39 trillion yen, or about 250 billion dollars.

The government is compiling a supplementary budget for the current fiscal year and hopes it can be passed by the end of next month.

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

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