A panel of lawmakers close to Prime Minister Sanae Takaichi has proposed compiling a supplementary budget exceeding 25 trillion yen ($161 billion) to fund her planned stimulus measures. The proposed amount is significantly larger than last year’s extra budget of 13.9 trillion yen, reflecting growing political calls to increase spending to ease the impact of rising living costs on households.

The proposal, made public on Tuesday, urges the government to “not hesitate to issue more bonds” to finance investments in growth areas and crisis management. The panel, composed of Liberal Democratic Party lawmakers who favor expansionary fiscal policies, presented the plan to Takaichi, with economic revitalisation minister Minoru Kiuchi—one of Takaichi’s close associates—serving as an adviser.

Since taking office last month, Takaichi has pledged a major spending package aimed at mitigating household financial strain and boosting investment, though the administration has yet to confirm its final size. Signals of a large stimulus have already pushed super-long Japanese government bond yields to record highs. ($1 = 154.99 yen)