Japan : Gov’t planning at least 20 trln yen to support economy

TOKYO : The Japanese government is planning to compile a stimulus package of at least 20 trillion yen ($ 186.60 billion) to help the economy emerge from deflation and fend off possible adverse effects of Brexit, Kyodo reported on Thursday, citing sources close to the matter.

The stimulus package is likely to be double the 10 trillion-plus yen that was previously expected, as it will now include projects for fiscal 2017 and beyond and increase “zaito” low-interest government loans by 6 trillion yen, Kyodo reported, citing the sources. (bit.ly/2a02b42)

It is also possible that the stimulus package and public expenditure may increase even further, depending on agreements between the government and the ruling coalition of the Liberal Democratic Party and Komeito Party, the news agency said.

Prime Minister Shinzo Abe’s government will seek Cabinet approval for the stimulus measures in early August, Kyodo reported.