TOKYO - THE Japanese government and ruling parties are mulling a new economic package that includes spending worth 15 trillion to 20 trillion yen (S$243.7 billion to S$325 billion) over the next three years, the Yomiuri newspaper reported on Tuesday without citing a source.
Japan is in the midst of a recession, with revised growth figures on Tuesday showing the economy shrank much more than first thought in the third quarter.
But voter support is tumbling for Prime Minister Taro Aso's government, with polls showing many Japanese want an early election even as he tries to work on resuscitating the economy in the midst of the global financial crisis.
The planned new spending would be financed through an extra budget for the current fiscal year to March 31 and use of some budget spending from the following year, the Yomiuri said.
The new package would bring forward some highway construction and promote energy saving technologies, and would prioritise on funding medium- to long-term policies that help boost domestic demand as well as help individuals, the newspaper reported.
Japan has revealed two economic packages since August, but Aso, who took office in September, has said Japan's economic problems would require three years to heal.
He has said last month that the extra budget to fund a promised 5 trillion yen stimulus package will not be submitted to parliament until early next year. -- THOMSON REUTERS
