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. Last Updated: 07/27/2016

Japan Plans Stimulus Package




TOKYO -- Japanese policy-makers outlined a hefty economic stimulus package Thursday and pressed the central bank to accommodate it by buying more government debt.


The ruling coalition parties vowed to compile an "aggressive" supplementary budget to ensure support for the fledgling recovery until private sector demand can take over.


No figures were released for the budget or the overall package that will incorporate it, but officials from the three parties said they will add to the 5.5 trillion yen ($51 billion) in direct fiscal spending proposed by the Finance Ministry.


Yoshio Suzuki, a policy-maker for the coalition member Liberal Party, predicted this core stimulus spending will come to 6.5 trillion to 7 trillion yen ($60 billion to $65 billion).


The policy chief for Prime Minister Keizo Obuchi's Liberal Democratic Party, Shizuka Kamei, said the budget, expected to be submitted to parliament next month, must be "as big as possible."


Kamei, who has said the entire package of measures would likely total 13 trillion yen ($120 billion) or more, said he hoped to finalize the details by Oct. 25.


The parties - the LDP, the Liberals and New Komeito - said the budget would place priority on such areas as tax and spending help for smaller firms, high-speed railways, highway construction and airport construction, disaster evacuation areas, safer housing and year 2000 computer problems.