Japan’s leading government spokesperson has taken out of consideration the issuance of deficit funds to bankroll an economic stimulus package scheduled for autumn and indicated at the utilization of construction bonds for longer-term ventures.
Chief Cabinet Secretary Yoshihide Suga, who also serves as the public face of the government, cleared speculations and denied that the Japanese government is planning to issue deficit bonds during an interview at his offices in Tokyo on Saturday. He added that the government wants to maximize the use of every possible resource, as well as financing, to make the stimulus package stronger.
Adding more debt to support the package, which is estimated to amount to around 10 trillion yen or $95 billion, might raise worries about how Japan will attain its goal of dissolving the budget shortfall in the following years.
Prime Minister Abe detailed plans for a daring stimulus package during his first speech following his win in the upper house election on July 10. He stated it would be comprised of funds to improve regional infrastructure.
The material has been provided by InstaForex Company – www.instaforex.com