Japan unveils $256 bn economic stimulus plan

December 12th, 2008 - 9:32 pm ICT by IANS  

Tokyo, Dec 12 (Xinhua) Japanese Prime Minister Taro Aso Friday unveiled a new 23 trillion yen ($256 billion) package to stimulate economy amid global recession, bringing the government’s total stimulus package to more than $550 billion.Aso said the new package involves 10 trillion yen of fiscal measures, including 1 trillion yen for housing and other support for temporary workers who have lost accommodation provided by their previous employers.

The government will also add 1 trillion yen to the local allocation tax to facilitate local governments create new job opportunities.

Thirteen trillion yen will be used in financial support, such as loan guarantees to small and midsize companies.

The spending will be appropriated in the second supplementary budget for fiscal 2008 and the initial budget for fiscal 2009.

Japan’s economy has officially entered recession with negative growth reported for two consecutive quarters.

On Saturday, Aso will meet with government leaders of China and South Korea to discuss regional cooperation on coping with the financial crisis.

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