The Japanese government approved 13.2 trillion yen ($121 billion) worth of public stimulus spending on Thursday, with the economy due for a total infusion of 26 trillion yen if private-sector and other outlays are factored in.
The sum is a step up from the amount originally expected to come from the government's budget -- more than 10 trillion yen. Investment in public works accounts for 6 trillion yen of the total, including natural disaster recovery and prevention projects.
More broadly, the package is meant to strengthen the economy against a possible cool-down period after the 2020 Tokyo Olympics and other risks such as the U.S.-China trade war.
Prime Minister Shinzo Abe made his case for the package in a policy meeting on Thursday morning, calling it a "powerful" set of measures suitable as the first stimulus of the new Imperial era that started this year.
"We should not miss this chance," Abe said. "Now is the time to accelerate Abenomics and seek to overcome the challenges facing us."
A key pillar of the package will be enhancing preparedness for natural disasters like the strong typhoon that hit in October. The government plans to beef up flood protections and remove roadside utility poles to make way for vehicles in emergencies. Some money will also go toward rebuilding Okinawa's Shuri Castle, a World Heritage site that burned down at the end of October.
Japanese Prime Minister Shinzo Abe speaks during a meeting of the economy and fiscal policy council in Tokyo on Dec. 5. (Photo by Uichiro Kasai)
The size of the spending plan and the speed at which it came together raised questions for some, given Japan's struggle to rein in its public debt.
Source: ANNnewsCH
