Prime Minister Shinzo Abe has begun considering additional economic measures and the compilation of a second supplementary budget for fiscal 2016 in view of the agreement reached between G7 leaders to adopt flexible fiscal spending to avert a global economic crisis during their Ise-Shima Summit talks. Toshimitsu Motegi, chairman of Liberal Democratic Party’s election strategy committee, said at a party gathering in Miyazaki on May 28, “We will work out additional economic stimulus after the House of Councillors election and submit a supplementary budget to the extraordinary Diet session.”
The supplementary budget plan is expected to amount to 5 to 10 trillion yen. Policies that need to be implemented in advance to boost personal spending will be selected from the “Plan to Realize the Dynamic Engagement of All Citizens,” which the cabinet will soon endorse. The issuance of premium shopping vouchers, which are designed to allow people to purchase more merchandise for the same amount of money, will be included as a key economic measure to support households.
The government will also consider increasing public works spending, while striving to execute initially allocated budgets ahead of schedule. The expenses for reconstruction from the Kumamoto earthquakes are expected to be financed under the first supplementary budget enacted this month, but the government will earmark additional funds if new measures are necessary. (Abridged)