TOKYO (MNI) – The Japanese government said on Wednesday that its Y4
trillion first supplementary budget for rebuilding quake-hit areas is
estimated to push up Japan’s gross domestic product by a real 0.6
percentage point.
The Cabinet Office also said the budget will create 200,000 jobs
and support firms to maintain 1.5 million existing positions.
The government has said the massive damage inflicted by the March
11 earthquake and tsunami on Japan’s northeastern Pacific coast is
estimated at up to Y25 trillion, the largest-ever from a disaster in the
country’s post-war history.
The estimated damage would exceed the toll of around Y9.6 trillion
from the Great Hanshin Earthquake, which hit the western Japanese port
city of Kobe on Jan. 17, 1995.
The government will finance the extra budget by slashing outlays
planned in the initial FY2011 budget, without issuing new debt.
The initial budget for the current fiscal year totals Y92.3
trillion, with the overall expenditure capped at Y71 trillion. The
government plans to issue Y44.3 trillion worth of bonds and estimates
tax revenue at Y37.4 trillion.
tokyo@marketnews.com
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