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Japan Approves 3.5T Yen Spending to Boost Recession-Hit Economy 2014-12-27 09:37:00.287 GMT
By Masaaki Iwamoto (Bloomberg) -- Japan’s cabinet approves 3.5t yen in economic measures after economy contracted in 2Q and 3Q following April’s sales tax increase. * Measures to boost real GDP by about 0.7%, according to documents from cabinet office * Measures to be funded by surplus from previous budget and rising tax revenue, doesn’t rely on new bond issuance, according to people involved in planning * Package is part of extra budget for this FY which is set to be approved in the next year’s parliamentary session * Measures include: * 1.2t yen in spending for people and small businesses hurt by current economy * 0.6t yen for domestic regional economies * 1.7t yen to speed up reconstruction from natural disasters and to improve disaster-preparedness * 1.7t yen to speed up reconstruction from natural disasters and to improve disaster-preparedness</li></ul> * Included in the measures will be support for the poor to buy heating fuel, low-interest funding for SMEs, shopping vouchers, and support for local govts, Prime Minister Shinzo Abe said earlier today
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To contact the reporter on this story: Masaaki Iwamoto in Tokyo at +81-3-3201-8343 or miwamoto4@bloomberg.net To contact the editors responsible for this story: Brett Miller at +81-3-3201-3528 or bmiller30@bloomberg.net James Mayger