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Japan approves $130 billion fiscal stimulus

Staff Writer |
Japanese Prime Minister Shinzo Abe's cabinet approved 13.5 trillion yen ($132 billion) in fiscal measures.

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The central bank fought market speculation that it is preparing to put the brakes on monetary stimulus for the world's third-biggest economy.

The government's package includes 7.5 trillion yen in spending by the national and local governments, and earmarks 6 trillion yen from the Fiscal Investment and Loan Program, which is not included in the government's general budget.

Abe said "We compiled today a strong economic package draft aimed at carrying out investment for the future."

"With this package, we'll proceed to not just stimulate demand but also achieve sustainable economic growth led by private demand."

The package's headline figure is 28.1 trillion yen, but it includes public-private partnerships and other amounts that are not direct government outlays and thus might not give an immediate boost to growth.

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