Japan Rolls Out New Spending Plan

Japan's new government has unveiled a new stimulus package worth $80 billion in an effort to prevent a sharp downturn, reports the Wall Street Journal.

 

However, critics say the new measure fell short of their expectations as it lacked bold new policies to spur growth, says the newspaper.

 

"It will help prevent a sharp downturn but do nothing more," Yasuo Yamamoto, a Mizuho Research Institute economist, told the Journal. "Public works spending and temporary tax cuts won't create confidence because everyone knows they aren't sustainable given Japan's current fiscal conditions."

 

In comparison, the package was smaller than the ¥15.4-trillion-spending plan introduced in April by the previous government, which was the largest ever in Japan's history, reveals the Journal.

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