9 Jan 2015
Japan cabinet approves extra USD 26 billion stimulus spending
FXStreet (Mumbai) - The Japanese government approved extra USD 26 billion or JPY 3.2 trillion budget to fund the stimulus effort in order to pull the economy out of recession.
The extra budget includes funding for helping Japan's lagging regions and households with subsidies and shopping vouchers and rebuilding after natural disasters. More importantly, the Japanese government will fund the spending through unspent money from previous budgets and tax revenue that have exceeded budget forecasts.
Moreover, the government has stayed committed to fiscal reform, by not resorting to fresh borrowing. It also cut new bond issuance by JPY 757.1 billion from the initially planned JPY 41.3 trillion for the current fiscal year ending in March.
The extra budget includes funding for helping Japan's lagging regions and households with subsidies and shopping vouchers and rebuilding after natural disasters. More importantly, the Japanese government will fund the spending through unspent money from previous budgets and tax revenue that have exceeded budget forecasts.
Moreover, the government has stayed committed to fiscal reform, by not resorting to fresh borrowing. It also cut new bond issuance by JPY 757.1 billion from the initially planned JPY 41.3 trillion for the current fiscal year ending in March.