Japan launches stimulus plan

The Japanese government and the ruling coalition parties have finalized an additional stimulus plan to pull the nation’s economy out of the worst recession of the postwar era. Japan’s third stimulus package since September will inject ¥15.4 trillion (US$156.25 billion), equivalent to 3% of the gross domestic product, into the country’s economy Prime Minister Taro Aso said the fresh measures are intended to “avert a freefall of the economy at all costs, secure jobs and alleviate people’s pains, and boost Japan’s future growth.,” To finance the extra budget, the government would issue deficit-covering bonds worth about ¥8 trillion (US$80.57 billion) and construction bonds, bringing the total amount of bond issuance in fiscal 2009 to a record-high of ¥44 trillion (US$443.18 billion). Aso also plans to revise Japan’s consumption and gift taxes to increase tax revenues, while corporate and income tax revenues would likely be cut amid worsening economy. On buying a hybrid car, consumers can receive a rebate of up to ¥250,000 (US$2,517) if they scrap gasoline-powered cars older than 13 years. (April 11, 2009)