Wednesday, 4th March 2009
In General Japan News,
Parliament approves cash handout
The Japanese parliament has approved a plan to give a cash hand-out to every resident in an attempt to kickstart spending during the economic downturn.
Under the proposals, most people will receive around 12,000 yen (£86), however there are concerns that many will simply hang on to the money instead of spending it.
Children under the age of 18 and people over 65 will receive 20,000 yen.
The idea is part of a package of measures aimed at stimulating Japan's economy which has been hit harder by recession than Europe or the US.
Osamu Sakashita, the deputy Cabinet secretary for public relations, commented: "We believe that a significant portion of the population will be appreciative once they receive the money."
Masamichi Adachi, senior economist at JP Morgan Securities in Tokyo, estimates that 25 per cent of the cash will be spent, while the rest will be saved, reports the Canadian Press.
Written by Keith Gorky