Japan

The stimulus package of $120bn to bolster the economy

Japan The stimulus package of $120bn to bolster the economy

Japan is preparing an economic stimulus package worth $120 billion to support growth. The spending would be earmarked in a supplementary budget for this fiscal year to next March and an annual budget for the coming fiscal year from April. Both budgets will be compiled later this month; the sources told Reuters.

The package would come to around 13 trillion yen ($120 billion), but that would rise to $230 billion when private-sector and other spending are included.
The 13 trillion yen includes more than 3 trillion yen from fiscal investment and loan programs, as the government seeks to take advantage of low borrowing costs under the Bank of Japan’s negative interest rate policy.

The government will mobilise construction bonds, unused money from the previous fiscal year’s budget and fiscal investment and loan programs to secure the necessary funding, the Nikkei reported.