Japan's new cabinet approves emergency budget
The cabinet of Japan's new Prime Minister Taro Aso on Monday approved a $17 billion emergency budget to stimulate Asia's largest economy, which contracted in the last quarter, officials said.
By Agencies |
TOKYO: The cabinet of Japan's new Prime Minister Taro Aso on Monday approved a $17 billion emergency budget to stimulate Asia's largest economy, which contracted in the last quarter, officials said.
The plan includes measures to help consumers, companies and farmers cope with high fuel costs and Wall Street's meltdown. The cabinet sent the budget proposal - which was drafted by Aso's predecessor Yasuo Fukuda but stalled due to political turmoil - to parliament, where the opposition controls one house.
The opposition is likely to put up resistance to the package. It has said that it wants discussions with the government on the budget, which some economists argue is too small to boost the economy.
Aso, who succeeded Fukuda on Wednesday, has said the budget is his top priority and hinted that he would call snap elections as early as October if the opposition stalls the measures in parliament. The budget worth 1.81 trillion yen ($17 billion) is part of an 11.7 trillion yen emergency package announced by Fukuda in late August as the economy teeters on recession and faces the fastest inflation in a decade.
Japan was stuck in a deflationary spiral for years, but the return of inflation has sparked concern as it is being driven entirely by rising import costs rather than a stronger domestic economy. Aso was due to deliver a policy speech to parliament at 2:00 pm (0500 GMT) to discuss further measures to help the economy.
His government got off to a rocky start with the transport minister already resigning over a series of controversial remarks.
The plan includes measures to help consumers, companies and farmers cope with high fuel costs and Wall Street's meltdown. The cabinet sent the budget proposal - which was drafted by Aso's predecessor Yasuo Fukuda but stalled due to political turmoil - to parliament, where the opposition controls one house.
The opposition is likely to put up resistance to the package. It has said that it wants discussions with the government on the budget, which some economists argue is too small to boost the economy.
Aso, who succeeded Fukuda on Wednesday, has said the budget is his top priority and hinted that he would call snap elections as early as October if the opposition stalls the measures in parliament. The budget worth 1.81 trillion yen ($17 billion) is part of an 11.7 trillion yen emergency package announced by Fukuda in late August as the economy teeters on recession and faces the fastest inflation in a decade.
Japan was stuck in a deflationary spiral for years, but the return of inflation has sparked concern as it is being driven entirely by rising import costs rather than a stronger domestic economy. Aso was due to deliver a policy speech to parliament at 2:00 pm (0500 GMT) to discuss further measures to help the economy.
His government got off to a rocky start with the transport minister already resigning over a series of controversial remarks.
ADVERTISEMENT
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
