TOKYO, Nov 21 Reuters Japan is considering spending 13.9 trillion yen 89.7 billion from its general account to fund a new stimulus package aimed at mitigating the impact of increasing prices on households, public broadcaster NHK said on Thursday.

The proposed spending, exceeding the 13.2 trillion yen allocated for last year39;s economic stimulus, is set to exacerbate Japan39;s already strained public finances, with debt currently twice the size of its economy.

The package also includes around 8 trillion yen for government investment and lending, as well as local government spending, putting the overall package at 39 trillion yen when private funding is included, NHK reported without citing sources.

The stimulus package will include 30,000 yen 193 to lowincome households that are exempt from residential taxes and 20,000 yen per child for households with families, according to sources familiar with the matter.

Major hurdles over the package were cleared on Wednesday after Japan39;s ruling coalition agreed with a key opposition party on the draft of the package.

I39;m not sure whether the economic package of this size is necessary now, when there are emerging signs that private consumption is picking up and real wage growth is turning positive, said Takayuki Sueyoshi, senior economist at Daiwa Institute of Research.

Sueyoshi also said that Japan39;s goal of running a primary budget surplus in the next fiscal year would now be hard to fulfill.

The government…