Japan's ruling coalition has agreed on a 9.6 million yen ($84,693) annual income cap for stimulus payments of 100,000 yen in cash and coupons to be paid to households with children up to the age of 18.

The plan suggested by the Liberal Democratic Party (LDP) was accepted by smaller coalition counterpart Komeito, and they formally struck an agreement in a meeting between the two parties' leaders on Wednesday. 

The LDP and coalition partner Komeito decided in a meeting of executives to grant 100,000 yen in cash payouts to low-income households hit by the coronavirus pandemic.

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Kishida informed party executives that he intends to put together the stimulus package by November 19 and an extra budget to cover the expenditure by the end of the month.

As part of the plan, the Komeito requested that all children aged 18 or younger receive 100,000 yen in cash, although LDP officials wanted to set an income cap. 

As a compromise, the two sides agreed to split the money in half in the form of a voucher. The other half will be paid in cash, however the two parties were still debating whether to set an annual income limit for those who qualify. 

The annual income cap for the stimulus package payments has now been agreed by Japan's ruling coalition and set at 9.6 million yen ($84,693) of 100,000 yen in cash and coupons to be paid to households with children aged 18 and younger.