Japan Cabinet approves US$130 billion in fiscal steps as part of stimulus

Japanese Prime Minister Shinzo Abe's government said it expects the stimulus to boost real GDP by around 1.3 per cent in the near term.
Japanese Prime Minister Shinzo Abe's government said it expects the stimulus to boost real GDP by around 1.3 per cent in the near term.PHOTO: REUTERS

TOKYO (REUTERS) - Japanese Prime Minister Shinzo Abe's Cabinet approved on Tuesday 13.5 trillion yen (S$176.9 billion) in fiscal measures in a stimulus package aimed at reviving flagging growth in the world's third-largest economy.

The fiscal measures comprise 7.5 trillion yen in spending by the national and regional governments, and 6 trillion yen from the Fiscal Investment and Loan Program, which is not included in the government's general budget.

The headline figure for the package, which includes spending by public-private partnerships and others that are not direct government outlays, comes to 28.1 trillion yen.

The government said it expects the stimulus to boost real gross domestic product (GDP) by around 1.3 per cent in the near term.