ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
Economy

Abe seeks fresh stimulus on heels of G-7 summit

TOKYO -- Having urged fellow Group of Seven leaders to stave off a looming global economic crisis with fiscal spending, Japanese Prime Minister Shinzo Abe has decided to seek a second round of additional funding just two months into the 2016 budget year.

Abe intends to propose a stimulus package in a special legislative session after the July upper house election. In the meantime, the government and the ruling coalition will discuss postponing a consumption tax increase set for April 2017.

Japan "will mobilize all policy options, including action on the fiscal front," against the threat of a global recession, Abe told reporters Friday following the conclusion of the G-7 summit in Ise-Shima.

The government will seek a supplementary budget worth 5 trillion yen to 10 trillion yen ($45.3 billion to $90.6 billion) -- including fiscal investment and loan program, or FILP, spending, which is separate from the general account -- that allocates money for public works and measures in a new plan to promote labor force participation.

Specific proposals include using FILP funds to accelerate construction of a magnetic-levitation train line between Nagoya and Osaka, issuing vouchers to stimulate consumer spending, raising pay for child-care workers and establishing a scholarship fund.

Officials envision paying for all of this with an expected increase in tax receipts and by issuing more deficit-covering bonds.

Abe said he is considering a delay in the April 2017 tax hike, which already has been postponed once. A formal announcement is expected Wednesday at the close of the current parliamentary session. The delay is seen lasting two years.

(Nikkei)

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more