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ECONOMY

Japan govt spending on economic package seen topping 10 t. yen

  • December 1, 2019
  • , Jiji Press , 7:02 p.m.
  • English Press

Tokyo, Dec. 1 (Jiji Press)–The Japanese government plans fiscal spending of over 10 trillion yen to finance a forthcoming economic stimulus package, informed sources said Sunday.

The package is aimed primarily at helping recovery efforts after a series of typhoons and heavy rains and shoring up the economy in the face of a slowdown in overseas economies, according to the sources.

The spending scale will come close to the 13.5 trillion yen for the previous set of stimulus measures compiled in 2016.

For the coming package, spending by the central and local governments will total more than 7 trillion yen. In addition, low-interest loans to private-sector projects under the central government’s fiscal investment and loan program will exceed 3 trillion yen.

The government plans to set aside the needed funds under a fiscal 2019 supplementary budget and the fiscal 2020 initial budget, both of which will be drawn up by the end of the year.

The key aims of the economic package will be to finance recovery and reconstruction from disasters, address economic risks from overseas and maintain the strength of the economy after the 2020 Tokyo Olympic and Paralympic Games.

Disaster response efforts will include reinforcing levees and dams and getting rid of utility poles in preparation for large-scale typhoons. The package will also be designed to strengthen the competitiveness of agriculture and small businesses as a way to tackle economic risks from overseas.

To prevent an economic downturn after the Tokyo Games, the government plans to promote technology development for the stage after the fifth-generation, or 5G, telecommunications network, give shopping reward points to the holders of My Number social security and taxation identification card, and distribute a personal computer to every student in elementary and junior high schools.

The government plans to make a final decision on the economic package as early as this week after holding talks with the ruling coalition, according to the sources.

With some in the ruling Liberal Democratic Party calling for some 10 trillion yen in the central government’s direct spending, the total fiscal expenditures for the economic package may increase further.

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