Sources say USD53 billion economic stimulus package is being prepared by Japan this week
On Tuesday, people who were familiar with the proceedings told Reuters that the government of Japan would be working on an economic stimulus package this week. The package was said to be worth USD53 billion and will be implemented to revive the country's economy ahead of a national sales tax increase in April. The size of the economic stimulus package was said to be on orders by Japan Prime Minister Shinzo Abe, and that it would be on the JPY5.4 trillion or USD52.43 billion to JPY5.6 trillion.
The sources refused to be named as the proceedings were not made for the public.
At a panel of the Liberal Democratic Party, which is Abe's political party, parliamentary finance secretary Yasuhiro Hanashi hinted that the state of Japan would be crafting an economic stimulus package that would be effective, and its size could be as much as JPY5 trillion if possible. Hanashi and other government ministers expressed the need for the economic stimulus to be that big of a size in order for the government to soften the blow from the April tax hike. The tax hike was deemed by Reuters as Japan's biggest step yet in order to curb its massive debt.
Sources added that the government will be mulling over the measures on Thursday, but the specific amounts will not be discussed until the state Cabinet will approve a supplementary budget in light of the stimulus package on December 12.
Last week, sources said the state budget, with the inclusion of the economic stimulus package, could worth somewhere around JPY7 trillion.
Reuters noted in its report that the massive monetary easing done by Japan's central bank Bank of Japan and the hefty government spending under President Abe's reign had early success in lifting the state from tepid growth and deflation, which had spanned 15 years.