ID :
138003
Tue, 08/17/2010 - 13:56
Auther :
Shortlink :
https://www.oananews.org//node/138003
The shortlink copeid
LEAD: Gov't starts mulling additional economy-spurring measures+
TOKYO, Aug. 16 Kyodo - The government has started contemplating additional measures aimed at addressing the slowing economy and stronger yen, government sources said Monday.
The measures are expected to include stimulating personal consumption of
eco-friendly products, helping new graduates find jobs and revitalizing small
and midsize companies, they said.
Regarding financial resources for the implementation of additional measures,
ideas such as using part of a surplus in the fiscal 2009 budget or part of the
reserves compiled in the fiscal 2010 budget have been floated.
But it remains uncertain whether the government will be able to hammer out and
implement measures swiftly in the divided Diet, where opposition parties
control the upper house and the ruling coalition the lower house.
Following the release Monday of slower-than-expected gross domestic product
growth data showing the Japanese economy expanded an annualized real 0.4
percent in the quarter through June, Prime Minister Naoto Kan ordered Finance
Minister Yoshihiko Noda and other related ministers to report on the current
economic situation and outlook.
''We need to closely watch (the economy) including foreign exchange,'' Kan told
reporters, referring to the growth data and the recent sharp rise in the yen
against the U.S. dollar and other major currencies, which has had a negative
impact on the earnings of Japanese exporters.
Last week, the dollar hit a 15-year low in the upper 84 yen level, prompting
calls from political and business circles for action to halt the yen's
appreciation.
The government will consider specific economic measures based on reports from
Noda as well as Satoshi Arai, state minister in charge of economic and fiscal
policy, and Masayuki Naoshima, economy, trade and industry minister, the
sources said.
The government ''should prioritize economic measures over compiling the fiscal
2011 budget and tax revisions'' in order to prevent the economic recovery
stalling, a senior Cabinet Office official said.
The government has started analyzing the scale of adverse effects on the
economy stemming from the expiration of its ''eco-car'' subsidy and
''eco-point'' incentive programs for appliances in September and December,
respectively.
Kan, who has emphasized fiscal reconstruction, is expected to avoid additional
issuance of deficit-covering bonds.
Some potential ideas for financial resources include using 920 billion yen, the
remaining balance of 1 trillion yen set aside in the fiscal 2010 budget to deal
with the economic crisis and local revitalization, the sources said.
The ideas also include utilizing 800 billion yen, part of a surplus of 1.6
trillion yen in the fiscal 2009 budget that would not be used to redeem
government bonds, they said.
==Kyodo
The measures are expected to include stimulating personal consumption of
eco-friendly products, helping new graduates find jobs and revitalizing small
and midsize companies, they said.
Regarding financial resources for the implementation of additional measures,
ideas such as using part of a surplus in the fiscal 2009 budget or part of the
reserves compiled in the fiscal 2010 budget have been floated.
But it remains uncertain whether the government will be able to hammer out and
implement measures swiftly in the divided Diet, where opposition parties
control the upper house and the ruling coalition the lower house.
Following the release Monday of slower-than-expected gross domestic product
growth data showing the Japanese economy expanded an annualized real 0.4
percent in the quarter through June, Prime Minister Naoto Kan ordered Finance
Minister Yoshihiko Noda and other related ministers to report on the current
economic situation and outlook.
''We need to closely watch (the economy) including foreign exchange,'' Kan told
reporters, referring to the growth data and the recent sharp rise in the yen
against the U.S. dollar and other major currencies, which has had a negative
impact on the earnings of Japanese exporters.
Last week, the dollar hit a 15-year low in the upper 84 yen level, prompting
calls from political and business circles for action to halt the yen's
appreciation.
The government will consider specific economic measures based on reports from
Noda as well as Satoshi Arai, state minister in charge of economic and fiscal
policy, and Masayuki Naoshima, economy, trade and industry minister, the
sources said.
The government ''should prioritize economic measures over compiling the fiscal
2011 budget and tax revisions'' in order to prevent the economic recovery
stalling, a senior Cabinet Office official said.
The government has started analyzing the scale of adverse effects on the
economy stemming from the expiration of its ''eco-car'' subsidy and
''eco-point'' incentive programs for appliances in September and December,
respectively.
Kan, who has emphasized fiscal reconstruction, is expected to avoid additional
issuance of deficit-covering bonds.
Some potential ideas for financial resources include using 920 billion yen, the
remaining balance of 1 trillion yen set aside in the fiscal 2010 budget to deal
with the economic crisis and local revitalization, the sources said.
The ideas also include utilizing 800 billion yen, part of a surplus of 1.6
trillion yen in the fiscal 2009 budget that would not be used to redeem
government bonds, they said.
==Kyodo
