Japanese gov't endorses 61.3 bln dollars stimulus plan, says further currency intervention possible
TOKYO. October 8. KAZINFORM Japanese Prime Minister Naoto Kan's Cabinet on Friday approved an emergency stimulus plan to the tune of 5.1 trillion yen (61.3 billion U.S. dollars) in a bid to boost the nation's economic recovery by combating persistent deflation and a surging yen, whilst supporting local governments and small businesses; Kazinform refers to Xinhua.
The package is significantly more than the 4.8 trillion yen proposed by Kan's ruling Democratic Party of Japan (DPJ), due to the rucking party's coalition member, the pro-spending People's New Party, insisting the budget be upped.
The proposed budget is aimed at addressing issues of employment, social welfare, medical and healthcare services, regional economic revitalization.
Specifically, the government spending aims to increase the nation's real gross domestic product by 0.6 percent and has set the creation of between 450,000 to 500,000 new jobs as one of its immediate targets to help drive the economy forward.
In addition, the package will seek to strengthen social welfare by making further provisions for child-rearing, nursing care and other such areas.
Public works projects and a number of measures to bolster small businesses in Japan are also central to the government's plans.
Kan's government will seek approval for the extra funding needed for the package from the Diet later this month, although political insiders inferred Friday that the ruling Democratic Party of Japan (DPJ) may face resistance from opposition parties and potentially struggle to win enough support to pass the bill smoothly through the less powerful Upper House of parliament.
The coalition has agreed however that new bonds will not be issued to finance the new stimulus package; Kazinform cites Xinhua.
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