Japan PM unveils $490bn stimulus package
Prime Minister of Japan, Fumio Kishida, unveiled a record-breaking stimulus package which approximately equals to 56 trillion Japanese yen.
- Japanese government will also compile an extra budget by the end of 2021, to fund the stimulus programme in order to deliver necessary aid to the public.
- The plan comprises of 100,000-yen payments for people aged 18 years or younger.
- It also includes aid for ailing businesses, Kishida and other politicians.
- The package also comprises of enough content and scale for delivering a sense of security and hope to the people.
- This stimulus bucks a global trend in withdrawing crisis-mode stimulus measures. It also places further strain on Japan’s already tattered finances.
Size of Spending in Japan
The size of spending was greater than 30-40 trillion yen, as estimated by markets, because of huge pay-outs to households & firms hit by covid-19 pandemic. Thus, the government will compile an extra budget of around 32 trillion yen to fund part of the cost. It comprises of spending for defence of $6.7bn, in the backdrop of China’s growing economic and military power.
How Japan lagged?
Japan has lagged other economies in getting out of pandemic-induced economic crisis. This forced policymakers to maintain enormous fiscal and monetary support even though other nations introduced crisis-mode policies.