Thursday, 1st December 2011
In Business In Japan,
Noda sets Y2tn budget in motion
Japan’s prime minister Yoshihiko Noda has ordered the finance minister Jun Azumi to begin drawing up a budget worth two trillion yen (£16 billion) ahead of the end of the fiscal year in March.
The budget is expected to combat the eight per cent rise in the value of the yen against the dollar in the last year, as well as the twin-tragedies of March 11th and the Thai floods.
According to the Financial Times, Japan’s gross state debt is now equivalent to more than 200 per cent of gross domestic product, although Noda said he did not want the budget to increase the deficit.
This is the fourth budget issued by the country this year, as it previously passed three budgets amounting to an estimated 18 trillion yen (£147 billion).
The prime minister also confirmed the budget would not be driven by new bond issuance but would be the result of cost savings, such as the proposed doubling of the five per cent consumption tax.
Governor of the Bank of Japan Masaaki Shirakawa vowed to improve the position of the yen in a speech made to parliament on November 29th.
Posted by Mark Smith