The Japanese government is set to pump in more funds into its economy. Its best to read this report in the context of Trump’s America first policy and U.S.-Japan trade.
As per sources within the Japanese government, in the wake of the resounding victory scored by Japanese Prime Minister Shinzo Abe in the recent elections, the Japanese government is set to add an extra budget of $24-$26 billion (2.7-2.9 trillion yen) for the fiscal year to March 2018, through the issue of additional bonds.
This will be in addition to the construction bonds that were already issued earlier. As a result, the Abe’s cabinet plans on bundling together the cash reserves from the previous fiscal year’s budget with money that was left unused from debt servicing, thanks to lower than estimated borrowing costs.
The sources clarified that no deficit-covering bond will be issued and have cautioned that plans have not yet been finalized.
The Japanese Prime Minister has ambitious plans of ramping up support for childcare, strengthen competitiveness of fisheries, farms and forestry industries and strengthen productivity of small and medium sized companies.
($1 = 111.3700 yen)