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Japan to spend extra $45 billion on economic stimulus package

Staff Writer |
Japan plans to spend additional $45 billion to prop up its economy under a second extra budget for fiscal 2016.

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Under the extra budget, 713.7 billion yen ($$7.11 billion) will be used to improve welfare including supporting child rearing, and distributing cash to low-earners to boost consumer spending, the Kyodo news quoted government sources as saying.

About 1.41 trillion yen ($14 billion) will be allocated to improve infrastructure to attract foreign tourists and facilitate agricultural exports.

Meanwhile, roughly 434 billion yen ($4.32 billion) will be spent to support fundraising by small and midsize companies, and revitalize local economies.

In addition, a total of 1.97 trillion yen ($19.63 billion) will be earmarked for disaster prevention and reconstruction of areas hit by earthquakes.

The plan of extra budget is expected to be approved by the cabinet on Wednesday before submitted to an extraordinary Diet session to be convened next month.

The supplementary budget comes following Prime Minister Shinzo Abe's cabinet approved earlier this month a stimulus package worth about 28 trillion yen in a bid to shore up the worlds third-largest economy that has been flagging.

The government estimated the stimulus would push up real gross domestic product (GDP) by around 1.3 percent in the next two years.

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