Japan readying US$120 bln stimulus package: report

December 03, 2019 11:06
Japanese authorities are said to be drawing up new measures to shore up the economy. Photo: Reuters

Japan is preparing a stimulus package worth US$120 billion to support economic growth, Reuters reports, citing government sources with knowledge of the matter.

The spending will be earmarked in a supplementary budget for this fiscal year to next March and an annual budget for the coming fiscal year from April, according to the report.

Both budgets will be compiled later this month, the sources told Reuters.

While the package would come to around 13 trillion yen (US$120 billion), it would rise to 25 trillion yen (US$230 billion) when private-sector and other spending are included.

Despite the headline size of the stimulus, actual spending would be smaller in the current fiscal year, and economists are not expecting much of a boost.

The 13 trillion yen includes more than 3 trillion yen from fiscal investment and loan program, as the heavily indebted government seeks to take advantage of low borrowing costs under the Bank of Japan’s negative interest rate policy.

Direct government spending is expected to reach around 7-8 trillion yen.

A final decision on the package could be made as early as Thursday, according to the report.

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