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Japan cabinet approves economic stimulus package worth $275 billion

Japan cabinet approves economic stimulus package worth $275 billion
04 August 2016 Current Affairs: Japan’s cabinet has approved an economic stimulus package worth 275 billion dollars in attempt kick-start the economy and boost growth of the world’s third-largest economy. Decision in this regard was Japanese Cabinet meeting chaired by Prime Minister Shinzo Abe in Tokyo. The Japanese government expects that this package will boost gross domestic product (GDP) by 1.3%.

The economic stimulus package of measures aims at tackling deflation and strengthening the national economy of Japan. It includes increase expenditure for the national and local governments as well as significant investments in the country’s infrastructure. 

It also includes in a supplementary budget, which will be considered by an extraordinary session of Parliament starting in September. It also will provide support of small and medium-sized enterprises in Japan over the next two years. More than half of package sum has been earmarked for the current fiscal year. The package also includes spending on reconstruction of disaster zones, including parts of north-eastern Japan which were devastated by 2011 earthquake and tsunami.

Japan’s economy, which is the third largest economy (in terms of nominal GDP) in the world after US and China, has been affected by stagnation and slow economic growth.

 In order to revive the economy Japanese government under the Prime Minister Sinzo Abe already had announced series of measures to halt economic stagnation. In 2012, Japanese government had announced series measures such as structural reforms, monetary easing and fiscal stimulus as part of the plan dubbed as Abenomics.


March 2017 Current affairs
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February 2017 Current affairs
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January 2017 Current affairs
31 JAN
NEWS
30 JAN
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28 JAN
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27 JAN
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25 JAN
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December 2016 Current affairs
31 DEC
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30 DEC
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November 2016 Current affairs
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