Japan Announces Stimulus Package Plan
Wednesday April 15, 2009
Like the US, the world's second largest economy Japan has been hit hard by the global recession. Japan suffered bankruptcies among its biggest manufacturers and unemployment in the country has surged.
In an attempt to keep the country's economy afloat amidst the global financial crisis, Japan's Prime Minister Taro Aso unveiled a hefty 15.4 trillion yen (equivalent to $154.6 billion) stimulus plan. The package, which is the largest ever for Japan, drew mixed reactions from economists and from people in the financial markets because of its huge amount which could mean generous spending and costly funding.
In retrospect, Japan has had several economic packages in the past to counteract its economic decline. In fact, the 15.4 trillion yen stimulus package is the fourth for Japan in less than eight months.
The latest stimulus package is said to include budget for projects that are required to make rash improvements in Japan's ailing economy, including extensions to be done on the runway of Tokyo's Haneda airport and on public-works projects. It is also intended to be used in stimulating consumption.
Specifically, highlights of the package include unemployment benefits and promotion of job sharing, aid to staggering companies, promoting health and welfare, improvement of infrastructure and promoting a greener environment which includes the purchase of environmentally friendly cars as well as energy-efficient electronics.
The steps that Aso had taken was said to underline his efforts to woo voters for the upcoming general elections.
It is still uncertain as to what the opposition has to say about the latest stimulus package.