Japan approves $29 bn stimulus package

The cabinet of Japanese Prime Minister Shinzo Abe approved a fresh stimulus package worth US$29 billion Saturday in a bid to boost the economy, hit hard by a tax hike. The 3.5-trillion-yen package is designed to help the provincial economy, small businesses and the household sector, as well as to increase public spending to rebuild areas hit by natural disasters.

With speedy implementation of these measures, I think we can bolster consumption and lift the provincial economy and expand the positive growth cycle to all corners of the country.

Prime Minister Abe, speaking to a meeting of ruling lawmakers shortly before the cabinet officially approved the package

Of the 3.5 trillion yen in the fresh stimulus, 600 billion yen will go to programmes to boost the local economy, 1.2 trillion yen for steps to help consumers and small businesses, and 1.7 trillion yen to rebuild areas hit by natural disasters, such as the 2011 tsunami and massive landslides this year. The stimulus includes subsidies for small businesses that are facing soaring fuel costs as a result of the falling yen.