(Reuters) - Japan's government is considering setting aside 1 trillion yen ($9.65 billion) for stimulus spending next fiscal year to help lessen the economic damage from a sales tax hike scheduled for October next year, the Nikkei newspaper reported on Thursday.
Prime Minister Shinzo Abe's government is set to decide budget guidelines at the end of August and is leaning towards setting aside the funds in the budget for the fiscal year starting in April, the Nikkei reported without citing sources.
The money could be spent on public works projects and subsidies for small- and medium-sized enterprises, the Nikkei said.
Abe's government has said it will decide sometime towards the end of this year whether to proceed with a sales tax increase to 10 percent from 8 percent that is scheduled for next year, which is part of a plan to raise revenue for welfare spending.
The government raised the sales tax to 8 percent from 5 percent in April, which caused a big decline in consumer spending and raised worries about the economic outlook.
reuters.com
Prime Minister Shinzo Abe's government is set to decide budget guidelines at the end of August and is leaning towards setting aside the funds in the budget for the fiscal year starting in April, the Nikkei reported without citing sources.
The money could be spent on public works projects and subsidies for small- and medium-sized enterprises, the Nikkei said.
Abe's government has said it will decide sometime towards the end of this year whether to proceed with a sales tax increase to 10 percent from 8 percent that is scheduled for next year, which is part of a plan to raise revenue for welfare spending.
The government raised the sales tax to 8 percent from 5 percent in April, which caused a big decline in consumer spending and raised worries about the economic outlook.
reuters.com
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