Data provided by iNet BFA
Loading...
See More

Japan approves $5bn stimulus budget

Oct 26 2012 08:04 AFP
japan flag

japan flag

Related Articles

Japan plans ¥1.0 trillion stimulus

Japan slams brakes on ¥5 trillion spend

New finance minister for Japan

Japan pledges $60bn to IMF

Japan holds development conference in Africa

Japan jobless rate stays at 4.5%

 

Tokyo - Japan on Friday approved a $5.3bn cash injection to boost the stuttering economy, a move likely to add pressure for more central bank measures with a general election looming on the horizon.

In a package that earmarked cash for the coastguard amid an island dispute with China, the cabinet agreed the ¥422.6bn in emergency spending, with money to be coming mainly from reserve funds rather than new debt.

"We hope the package will lead to an exit from deflation and jumpstart the economy," Chief Cabinet Secretary Osamu Fujimura told a news conference Friday in Tokyo.

The relatively small aid package was expected to add pressure on the Bank of Japan to extend its 80 trillion yen asset-purchase scheme after a policy meeting next week, analysts said, as Japan's post-disaster economic recovery slows.

"The actual impact of the package on the real economy appears to be limited," said Masatoshi Sato, strategist at Mizuho Investors Securities.

"But it can be a message to the market and the Bank of Japan ahead of its policy-making meeting, saying the government is taking its own action," Sato said.

It also highlighted growing stress on Japan's national budget after Tokyo said last month it would suspend ¥5.0 trillion in spending due to a political row that has left the government facing a cash crunch that could see it run out of money within months.

The opposition wants Noda to set a date for elections before approving a bond-issuance bill needed to help pay for about 40% of Tokyo's spending in the fiscal year to March.

Under the package announced Friday, more than ¥260bn will be for regions hit hard by last year's quake-tsunami disaster and nuclear crisis.

About ¥17bn will be used to beef up Japan's coastguard at a time of heightened tensions over the ownership of an East China Sea island chain believed to sit atop natural resources.

On Thursday, four Chinese government ships spent several hours in territorial waters around the disputed Tokyo-controlled islands, as the Asian giants reportedly get set for talks on their long-standing row.

The extra budget measure announced Friday is the first in the current fiscal year to March, after Tokyo earlier approved trillions of yen in reconstruction and disaster aid.

The package will also be aimed at boosting energy and environment-related industries as well as agriculture, forestry and fisheries.

Some funds will help promote stem-cell research after Japan's Shinya Yamanaka won this year's Nobel Prize in medicine for his work in the field.

Another package is expected next month.

japan  |  stimulus package
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about:

Small Business

A cash flow crunch often occurs in small businesses trying to balance cash coming in with cash going out. Watch this video to help you improve.
 
 

No more nice-to-have shopping sprees

Fin24 user Asia writes how she managed to rehabilite herself from splurging on feel-good iitems and keep clean from the bondage of lifestyle debt.

 
 

Start saving...

Time the key for retirement saving
Dummy's guide to saving
Save money with affordable account
All about endowments

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...