Japanese Prime Minister Shinzo Abe's cabinet approved a $182 billion package on Thursday to pull the economy out of deflation, but doubts remain about the impact.
The package has a headline value of 18.6 trillion yen, which is an exaggerated figure as the bulk of the package includes loans from government-backed lenders and spending by local governments that was already scheduled.The core of the package is 5.5 trillion yen in spending measures which Abe ordered in October to bolster the economy ahead of a national sales-tax hike in April. The government does not have to sell new debt to fund this spending.
The steps approved on Thursday include measures to boost competitiveness; assist women, youth and the elderly; accelerate reconstruction from the March 2011 earthquake and tsunami; and build infrastructure for the 2020 Tokyo Olympics.
The overall size of the package is on a par with Abe's 20 trillion yen burst of spending early this year as part of his campaign to end 15 years of falling prices and tepid growth.
Source: NewsOnJapan
The steps approved on Thursday include measures to boost competitiveness; assist women, youth and the elderly; accelerate reconstruction from the March 2011 earthquake and tsunami; and build infrastructure for the 2020 Tokyo Olympics.
The overall size of the package is on a par with Abe's 20 trillion yen burst of spending early this year as part of his campaign to end 15 years of falling prices and tepid growth.
Source: NewsOnJapan
