The Straits Times
Published on Jan 28, 2013

Japan PM says stimulus spending not 'forever' ahead of budget


TOKYO (AFP) - Japanese premier Shinzo Abe pledged today he would not keep stimulus spending "forever" in a policy speech ahead of a budget that will raise more in taxes than it does from borrowing.

Mr Abe's plan to overturn four years in which the majority of money the government spends is raised from selling bonds came as an opinion poll showed he has enjoyed a boost in popularity since coming to power last month.

"We can't continue fiscal spending forever," he told parliament at the opening of a new session. "We will draw up and implement a growth strategy that will see private investment and consumption grow sustainably."

"The greatest and most urgent challenge for our country is revival of the economy. We can't exit from deflation and from a high yen by keeping the past measures. Therefore I present a bold policy package," he said.