The Straits Times
Published on Dec 19, 2012

Japan incoming government eyes $145 billion spending plan


TOKYO (AFP) - Japan's incoming conservative government said on Wednesday that it would launch a huge spending package worth about S$145 billion aimed at injecting life into the nation's limp economy.

The Liberal Democratic Party (LDP) led by hawkish Shinzo Abe will ditch the current overdraft limit so it can pay for the whopping stimulus, reports said, even as ratings agencies have warned Tokyo over its spending.

"We must work out a supplementary budget urgently," the party's deputy head Masahiko Komura told reporters in the Japanese capital.

"From a macroeconomic viewpoint, some 10 trillion yen (S$145 billion) will probably be needed."