PM's vague call for stimulus could backfire
News On Japan via Reuters -- Oct 17

Japan's prime minister ordered a new round of stimulus to try to revive economic growth but offered so few details about the size and contents of the package that it is unlikely to ease worries about the faltering economy.

Having promised a national election "soon", Yoshihiko Noda is under pressure to lift the world's third-biggest economy after growth stalled in recent months, raising concerns it could slide into a recession.

Noda asked his cabinet to compile the package by next month, but the government has not made a decision on how much it will spend, Finance Minister Koriki Jojima said.

The government lacks the strength to push through a new spending bill in the divided parliament, so the stimulus will not involve new bond issuance. It could tap budget reserves to fund the new plan as that does not require opposition votes.

Japanese media reported earlier on Wednesday that the new measures will include spending on renewable energy, healthcare and agriculture and will total about 1 trillion yen ($12.7 billion), which economists said is too small to have a lasting impact.

経済対策の取りまとめを目指す政府の方針について、藤村官房長官は記者会見で、「経済活性化に向けた取り組みの加速が必要だ」と強調した。

Source: Reuters, FNNnewsCH



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