Japan Adopts 7.2-T.-Yen Stimulus Package

Tokyo, Dec. 8 (Jiji Press)--Japan's cabinet Tuesday adopted a fresh stimulus package featuring fiscal spending worth 7.2 trillion yen to prevent the economy from slipping back into recession.

The package, which supports projects worth 24.4 trillion yen, will
be a key part of a second supplementary budget for fiscal 2009 ending next
March.
The government increased the amount of fiscal spending by 100
billion yen from the previous plan amid pressure from the People's New
Party, a junior partner in Prime Minister Yukio Hatoyama's ruling coalition.
The government plans to adopt the second extra budget on Dec. 15
and submit it to parliament early next year.
The government plans to finance the stimulus package by using 2.7
trillion yen worth of funds that were saved through a review of the first
extra budget compiled by the previous government.
The government also plans to utilize reserve funds as well as an
unused portion of funds earmarked for interest payments on government debt.
In addition, the government will issue new debt.
Under the package, the government plans to spend 600 billion yen
for employment measures, 800 billion yen for environment preservation and
1.7 trillion yen for programs to shore up the economy.
The package also includes 800 billion yen for measures to protect
people's livelihoods and 3.5 trillion yen for programs to support municipal
governments.
The environment programs include incentives to encourage purchases
of energy-efficient vehicles, home appliances and housing.
The economy-boosting measures include a cut in housing loan
interest rates.