politics

Suga signals readiness for new stimulus package

21 Comments
By Yoshifumi Takemoto and Daniel Leussink

Japanese Prime Minister Yoshihide Suga said the government will do all it can to help the economy recover, signalling his readiness to compile another stimulus package to cushion the blow from the coronavirus pandemic.

Laying the groundwork for more spending, private sector members of a key government council urged Suga's administration to put together measures to support the economy, financed by an extra budget of "sufficient size" by the end of the year.

"We'd like to come up with measures to put Japan's economy back on a recovery path by deploying all available means in a timely fashion," Suga told the council's meeting on Monday.

In a separate meeting with ruling party executives, Suga said he would instruct his cabinet on Tuesday to begin work on a third extra budget, Jiji news agency reported.

After posting its worst contraction in the second quarter since World War Two, Japan's economy is expected to have rebounded in the three months through September.

But the recovery has been fragile, keeping policymakers under pressure to top up fiscal and monetary support.

Although the size of the package has yet to be decided, requests from ruling party lawmakers have ranged between 10 trillion yen ($96.49 billion) and 30 trillion yen.

That will come on top of a combined $2.2 trillion rolled out in two earlier stimulus packages this year, which would strain Japan's already tattered finances.

Suga's comments at the meeting followed a separate proposal from the private-sector members for the government to show more leadership towards drafting international rules for achieving a carbon-neutral society, and in promoting "green" innovation.

"By aiming for innovation focused on decarbonisation, business opportunities will be created and quality of life should be improved," the members said in a statement.

Suga unveiled a major shift in the government's position on climate change in a policy address to parliament last month, pledging to cut greenhouse gases to zero by 2050 and to make Japan a carbon-neutral society.

© Thomson Reuters 2020.

©2020 GPlusMedia Inc.

21 Comments
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"....which would strain Japan's already tattered finances."

What is the evidence that Japan's finances are "tattered."? Rocketing interest rates? Nope. Rocketing inflation? Collapsing yen? Nope, nope, nope.

Argentina and Greece have had "tattered finances." Japan clearly has not.

1 ( +2 / -1 )

readiness for new stimulus package

Just add more debt to the existing one, what happened to current budget already taken by GoTo travel?

4 ( +5 / -1 )

What, more masks and Go To coupons?

5 ( +7 / -2 )

Another 100,000 yen please.

6 ( +7 / -1 )

More Buisness subsidies? Increased debt, higher taxes. Sounds like a plan.

2 ( +3 / -1 )

Good relationship with China is better than 1000 stimulus.

-7 ( +2 / -9 )

What, more masks and Go To coupons?

Sorry the break the bad news...it translates to massive gifts of taxpayer money to amukurari linked big companies and no bonuses for staff.

6 ( +6 / -0 )

Reality check

It's a Pandemic going on worldwide, the worst in over 100 years.

Forced shutdowns are happening again in multiple countries.

Death toll worldwide is in the million and not stopping.

Suicide rates are at an all time high.

Birth rates are declining.

-If we don't help our citizens now, then when?? When is it a good time to do it??

Rediculous! Shows how little some care!

-1 ( +2 / -3 )

Help the unemployed

3 ( +3 / -0 )

LDP,s regular as clockwork pork barelling ...any excuse to dish out taxpayer dough to the cronies and vested interests ( with pehaps a few crumbs for the average peasant ). Election coming next year, yoroshiku.

5 ( +5 / -0 )

No mention of who will get the money. More corporate welfare for LDP supporters?

1 ( +1 / -0 )

vanityofvanities

Another 100,000 yen please.

I like the way you think and I agree!

2 ( +2 / -0 )

The receipt of your ¥100,000 support is immediately followed by the issue of your resident tax bill - works out as just an interdepartmental transfer of money in the J-Gov.

0 ( +0 / -0 )

Make it ¥200,000 what the hell might as well make it double. Not like the decision makers care or will be around to sort out the debt. Double down I say.

1 ( +1 / -0 )

Still with this 80es policies,when will these outdated J-politicians time travel to present days?

1 ( +1 / -0 )

What, more masks and Go To coupons?

How about $250 billion for small business?

Using the government’s relief program for small and midsize companies hit by the coronavirus pandemic, have extended the equivalent of more than $250 billion in less than six months,

https://www.wsj.com/articles/coronavirus-relief-surges-for-japans-small-businesses-11604847602

-3 ( +0 / -3 )

everyone get ready for another 10% value-added tax hike next year...

1 ( +1 / -0 )

Another 10,000? OK, but you have to replace the ¥ character with a placeholder this time so anyone can choose something that is some nearer to fit the size of the problem, $€£...free choice for everyone.

0 ( +0 / -0 )

@Nihonview

Did you even read the article you posted? Don't try and twist reality. I'll post the relevant information for others to read.

Many small business whom have had a 10% or more drop in profits are able to apply for privately issues, government back loans. The loan term is 3 years interest free, after which the interest rate which has not been disclosed will be applied. The maximum loan is 5 million yen.

Don't act like the government has given small business 250 billion. That's blatantly untrue.

2 ( +2 / -0 )

If we don't help our citizens now, then when?? When is it a good time to do it??Rediculous! Shows how little some care!

What are you on about, according to your speakingwisdom posts, Japan is doing better than anyone else with covid and is the best country in the Universe by far, so there is no need for any "help" is there?.....but seriously, if Suga gives a substantial payment or tax cut to every long suffering average taxpayer , great I,ll take off my hat, but what are the odds vast majority of the funds will go to LDP J-Inc buddies ( as usual ) and Suga,s pet Go to Travel project, ....bets ?

1 ( +1 / -0 )

The stimulus definitely not going to affect the common people much, most of it is going to the business elites anyways, especially Dentsu.

Basically if you are worth less than 1 billion yen, you are probably not getting affected much by this.

0 ( +0 / -0 )

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