Japan’s emergency stimulus package to boost its slowing export-reliant economy will be worth over 20 trillion yen ($228.6 billion), with the government compiling a 13.1 trillion yen extra budget for this fiscal year, sources close to the matter said Tuesday.
The package, which includes public-private initiatives, is aimed at bolstering the nation’s trade and promoting corporate investment by increasing public works projects in a bid to achieve sustainable economic growth.
The government of Prime Minister Shinzo Abe, who took office on Dec. 26, is scheduled to finalize the emergency stimulus package on Friday. The extra budget for the year through March 31 is expected to be approved by the Cabinet next Tuesday.
The outline of the emergency package was approved on Tuesday by the government at the first meeting of a newly created policymaking framework, named the headquarters for Japan’s economic revival, chaired by Abe.
“It’s a historic challenge to combat deflation that has lingered for more than a decade,” Abe said during the meeting, in which all Cabinet members participated.
The outline of the package stipulated that the government will make a mechanism to strengthen cooperation with the Bank of Japan to beat deflation as soon as possible, while closely monitoring the development of the foreign exchange market.
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