Japan Approves $130 billion Stimulus Package
The Japanese cabinet under Prime Minister Shinzo Abe announced a 13.5 trillion yen ($132.04 billion) in fiscal measures on August 2nd as part of efforts to boost the economy, with cash payouts to low-income earners and infrastructure spending.
The plan worth 13.5 trillion yen includes 7.5 trillion yen in new spending for the national and local governments over the next two years, and 6 trillion yen in low-cost loans.
The new spending incorporates:
- 1.7 trillion yen for infrastructure projects including a magnetic-levitation train line connecting Tokyo and Osaka
- 2.5 trillion yen in welfare spending including cash handouts of 15,000 yen each to 22 million low-income people
- 2.7 trillion yen for relief measures for the April quakes in Kumamoto and the 2011 earthquake and tsunami in Tohoku
- 0.6 trillion yen to help smaller companies and regional economies in Japan and offset risks caused by Brexit
Economists predict the spending will provide only a modest increase to economic growth next year.
8/2/2016 12:52:11 PM