Japan’s Prime Minister Shinzo Abe is eager to rescue Abenomics.
Japan’s Finance Minister Taro Aso told Parliament over the weekend that Abe will propose delaying the sales tax hike, from 8% to 10%, for a second time until October 2019. In addition, Abe plans to propose a stimulus package in a special legislative session after the July upper house election. The government will seek a supplementary budget worth 5 to 10 trillion yen ($45 to $90 billion), the Nikkei reported.
But Abe’s moves are not without consequences.
Finance Minister Aso warned that the second delay may trigger a general election to “put the plan to the public.” Abe already called a snap election in late 2014, which Japanese voters found pointless. Japanese media Kyodo News reported that Abe doesn’t plan to call snap elections on the same day as the Upper House’s July vote.