Japan plans additional $165 bn for reconstruction
Tokyo: Japan`s government plans additional spending of JPY 13 trillion (USD 165 billion) for reconstruction projects after the March 11 earthquake and tsunami, on top of a combined JPY 6 trillion already set aside in two extra budgets, a government source said on Thursday.
Investors are counting on reconstruction spending to help the world`s third-largest economy pull out from a slump caused by the disasters and say that without substantial spending, it may not be able to resume moderate growth.
To raise the money, the government is considering issuing special bonds, scaling back other spending plans and selling national assets, said the source who declines to be identified.
The government has yet to finalise the maturity periods for the planned reconstruction bonds but the Ministry of Finance is planning 5 year bonds, the source said.
Tokyo will consider seeking tax hikes to repay the bonds, the source said.
Government officials have said that further reconstruction-related spending could be more than JPY 10 trillion.
The JPY 13 trillion spending would translate into projects worth around JPY 23-25 trillion, the source said, adding that the projects would be implemented over 10 years with 80 percent of them in the first five years, the source said.
A government advisory panel on reconstruction last month proposed a temporary increase in corporate, personal income and sales taxes, to help pay for Japan`s biggest rebuilding project since the period following World War Two.
The Mainichi newspaper said the projects will range from financial assistance for the quake-hit area`s farmers, to the promotion of renewable energy and the creation of special districts to support the fishing industry.
The reconstruction plans, however, do not include how to deal with the crisis at the crippled Fukushima nuclear plant that has leaked radiation since the disaster in the world`s worst nuclear accident since Chernobyl, the source said.
With public debt already twice the size of the USD 5 trillion economy, the government has so far funded the previous two extra budgets without new borrowing while tapping fiscal reserves and reallocating spending.
More from India
More from World
More from Sports
More from Entertaiment
- UP: Jammu-bound Muri Express derails in Kaushambi
- CBSE Board Class 12th Exam Results 2015 declared
- Delhi's 2015 CBSE Class 12 topper M Gayatri talks to Zee Media
- Dawood's intercepted phone calls prove yet again he is in Pakistan
- Watch: Mumbai cops find new secret agents in housewives!
- No respite from heat for next three days: IMD
- One year of Modi govt: PM promises to fulfil aspirations
- One year of Modi govt: PM addresses mega rally in Mathura
- DNA: Sikh man in New Zealand removed his turban to help injured kid
- Police registers case after parachute-like objects were spotted over Mumbai airport
- Hundreds die as heat wave continues in India
- Growing medical negligence in Delhi's AIIMS
- DNA: AIIMS doctor removes both kidneys of minor, claims she had only one
- 2G scam: Ex-TRAI chief alleges Manmohan Singh had warned him to cooperate
- Pranab Mukherjee defends Bofors scam, says it was just a media trial
- Cbse.nic.in & cbseresults.nic.in Class 12th XII Results 2015: CBSE Board Class 12th XII Exam Results 2015 declared
- Check WBBSE (wbresults.nic.in) Class 12th Results: West Bengal Board (wbscvet.org) Higher Secondary Class XII Vocational Results to be declared today at 4 PM
- Two dead, over 100 injured as Muri Express derails in UP; Prabhu announces Rs 2 lakhs ex-gratia for kin of dead
- PM Narendra Modi's Mathura rally: As it happened
- Public rally on 100 days of AAP govt: As it happened
- One year of NDA govt: PM Modi writes open letter to nation, promises to transform India
- World optimistic about India: PM Narendra Modi on 1 year of NDA govt
- Unidentified flying objects spotted over Mumbai airport not motorised: Home Department
- Bharatiya Janata Party lacks majority for Ram Temple, Article 370: Amit Shah
- AAP govt moves resolution against MHA notification: As it happened
- China doesn't recognise 'illegal' McMahon Line: Beijing responds to NSA Ajit Doval
- MSBSHSE Class 12th HSC results 2015 to be declared at 1pm tomorrow
- CBSE 10th Results 2015 to be declared on May 27
- CBSE Class 12th Board Exam Results 2015: cbseresults.nic.in crashes
- CBSE Results 2015: Girls outperform boys in Class 12 Board Exams