Wednesday, 6th April 2011
In Business In Japan, General Japan News,
Quake reconstruction budget to total three trillion yen
The government's emergency budget to finance earthquake reconstruction efforts will top the three trillion yen (£22 billion) mark, it has been announced.
Funds will be raised without relying on bond issuance, Kyodo News reported yesterday (April 5th), while several previously announced policies will be scrapped.
Monthly child allowances will not be increased as planned, while the introduction of more toll-free highways will also be abandoned.
These policies may face strong opposition from within the ruling Democratic Party of Japan (DPJ) before its official submission at the end of the month.
The initial round of emergency spending will likely be backed up by a second and third batch of funding, the DPJ added, taking the overall total to over ten trillion yen, more than triple the budget for rebuilding after the 1995 Kobe earthquake.
In other news, the Organization for Economic Cooperation and Development said yesterday that Japan's second quarter economic growth outlook could be revised down by as much as 1.4 per cent after the March 11th earthquake.
Written by Susan Ballion