Japan’s Prime Minister Sanae Takaichi has pushed through her first major policy initiative, with the cabinet on Friday approving a sizeable economic stimulus package aimed at cushioning households and businesses from persistent inflation.

The program totals JPY 21.3 trillion (about $135.4 billion), including JPY 17.7 trillion in general account spending—well above last year’s JPY 13.9 trillion—and marks the largest fiscal injection since the COVID-era emergency measures. The plan also features JPY 2.7 trillion in tax cuts designed to support disposable income and corporate activity.

While the government framed the package as a way to offset rising living costs, the approach runs counter to conventional concerns that aggressive fiscal stimulus can intensify inflationary pressures.

Bitcoin, often viewed as a hedge against loose monetary and fiscal policy, did not respond positively. BTC slipped 0.8% to $85,480, extending a broader downturn that has dragged the asset down sharply from its Oct. 8 all-time high of $126,000.