Prime Minister Shinzo Abe’s Cabinet will endorse Friday a 3.12 trillion yen supplementary budget for fiscal 2014 to fund an economic stimulus package aimed at bolstering domestic demand curtailed by the April 1 consumption tax hike and weaker yen.
In an attempt to shore up flagging private spending, the government will allot 1.19 trillion yen to provide subsidies aimed at offsetting rising fuel costs and helping local governments implement measures necessary to revitalize their economies.
Abe’s administration mapped out the latest stimulus package worth around 3.5 trillion yen on Dec. 27. The extra budget is likely to be enacted during the ordinary Diet session to be convened later this month.
By using unspent money from the fiscal 2013 budget and tax revenue in the current fiscal year through March, the government will finance the supplementary budget without issuing new debt.
The issuance of new bonds this fiscal year will be also trimmed by 7,571 billion yen from the initially budgeted 41.25 trillion yen.
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