Friday, 7th October 2011
In General Japan News,
Government approves plans for billion dollar recovery budget
The Japanese government has approved the proposal for a recovery budget worth $156 billion (£100 billion).
In a move that could see inflation soar and taxes increase, it is hoped the fund would go towards helping restore the nation to its former economic glory.
However, the plan must now be discussed with the opposition before it can be passed, and the Democratic Party has already approached the opposing bench for its support.
The budget will be divided across a number of areas, with 9.1 trillion yen (£76 billion) being afforded to disaster-related spending and a further 6.1 trillion yen (£51 billion) designated to reconstruction projects.
Jun Azumi, finance minister, said at a news conference: "We will continue discussions with ruling and opposition parties, and as a result, we could modify bills and take additional budgetary steps as needed," Reuters quoted.
Last month it was revealed the government granted an additional fund worth up to 15 trillion yen (£125 billion) to combat the strengthening of the yen in international markets.
This budgetary proposal could also go towards helping the nation deal with the currency's heightened position.
Posted by Mark Smith