Noda signals 4th budget to boost economy
Source: Agencies |
December 2, 2011, Friday
|
Print Edition
Print Edition
JAPAN'S prime minister yesterday said he will compile a fourth extra budget to support the nation's economy amid the growing effects of a strong yen, flooding in Thailand and the eurozone crisis.
Prime Minister Yoshihiko Noda said he has instructed Finance Minister Jun Azumi to begin compiling the additional budget for the fiscal year that ends in March.
The budget is aimed at addressing "the growing sense of uncertainty due to developments such as the high yen, flooding in Thailand and eurozone debt crisis," he said.
Noda said the additional budget will not be funded by government bonds, but rather through administrative cost-cutting. He did not reveal the size of a planned budget.
Noda's government has passed three sets of supplementary budgets this year totaling some 18 trillion yen (US$231.7 billion) to fund reconstruction projects in areas affected by the March 11 earthquake and tsunami and ensuing nuclear crisis.
The triple disasters hit at a time Japan's economy has been stagnating for more than a decade, its public debt ballooning and population shrinking and aging. Exports, corporate investment and consumer spending have been all falling in recent months.
Europe's sovereign debt problems have triggered concerns about the global economy, sending investors to flock to the yen as a safe haven. The yen has tested historic highs against the dollar this year and forced major manufacturers to shift some production out of Japan. A strong yen shrinks the value of overseas profits when repatriated and makes Japanese products more expensive in overseas markets.
Japanese firms were also hit by flooding in Thailand, where many of their factories are based, just as they were recovering from the production slide cause by Japan's own disasters in March.
Prime Minister Yoshihiko Noda said he has instructed Finance Minister Jun Azumi to begin compiling the additional budget for the fiscal year that ends in March.
The budget is aimed at addressing "the growing sense of uncertainty due to developments such as the high yen, flooding in Thailand and eurozone debt crisis," he said.
Noda said the additional budget will not be funded by government bonds, but rather through administrative cost-cutting. He did not reveal the size of a planned budget.
Noda's government has passed three sets of supplementary budgets this year totaling some 18 trillion yen (US$231.7 billion) to fund reconstruction projects in areas affected by the March 11 earthquake and tsunami and ensuing nuclear crisis.
The triple disasters hit at a time Japan's economy has been stagnating for more than a decade, its public debt ballooning and population shrinking and aging. Exports, corporate investment and consumer spending have been all falling in recent months.
Europe's sovereign debt problems have triggered concerns about the global economy, sending investors to flock to the yen as a safe haven. The yen has tested historic highs against the dollar this year and forced major manufacturers to shift some production out of Japan. A strong yen shrinks the value of overseas profits when repatriated and makes Japanese products more expensive in overseas markets.
Japanese firms were also hit by flooding in Thailand, where many of their factories are based, just as they were recovering from the production slide cause by Japan's own disasters in March.
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