Japan will spend up to $30 billion in a stimulus package to revive the country’s regions but will keep new bond issuance in check, sources say, highlighting the tough balance Prime Minister Shinzo Abe must strike between lifting growth and fixing Tokyo’s tattered finances.
With his landslide win in Sunday’s election giving him a fresh mandate to end 15 years of deflation, Abe has pledged to push through his “Abenomics” stimulus policies including the missing third arrow of structural and fiscal reforms.
The premier instructed his ministers in November to lay out a stimulus package and plans to finalize it on Dec. 27, as part of efforts to pull the economy out of a recession caused by the hit from a sales tax hike in April.
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