Japan Inc wants another 30-trillion yen economic measures
23 Mar 2009
Influential Japanese businessmen are pushing Prime Minister Taro Aso for supplementary economic measures worth 30-trillion yen, after the 2009 budget is cleared.
The request for the 30-trillion yen measures was made by Japan's Business Federation chairman Fujio Mitarai and Japan's Chamber of Commerce and Industry Chairman Tadashi Okamura at a meeting of an experts' panel held at the prime minister's office.
Mitarai said in the panel's meeting that accepting that the supply-demand gap exist around 25 trillion yen, additional economic measures needed would be at least 30-trillion yen.
The panel comprising economists and governors deliberated on the measures demanded by Japnese businesses for five days to evolve a response to the recession thrown up by the global crisis causing the economic recession.
The ruling Liberal Democratic party members are also pressing for a new 30-trillion yen stimulus, which the government has so far resisted.
Analysts say the forthcoming budget due next month may requie the government to reach a compromise with the opposition, which controls the upper house.
With Japan's election scheduled by end September policymakers are also anticipating that Prime Minister Aso will come out with measures to stimulate the economy especially with his image having fallen in opinion polls.
Japan's Finance Minister Kaoru Yosano, who was part of expert panel told reporters after the meeting that though the government was not in a position to respond immediately, it would consider the demands.
Japan's government has been facing pressure for another stimulus package after plunging exports pushed the country, the world's second largest economy's growth to a 35-year low. (See: Japan's economy slides to its lowest since WW II)
In January, the Japanese government opened a 1.5-trillion yen ($16.7 billion) sustenance package to small companies threatened by the global financial crisis, in a move to ease the credit crunch, the dwindling economy from bankruptcies and in the wake of massive job cuts by companies (See: An opens $16.7-billion package for small companies)
Last month Bank of Japan announced that it would provide three-month funds to financial institutions at low interest rates and proposed to introduce Special Funds-Supplying Operations to facilitate corporate financing, (See: Bank of Japan maintains interest rate, introduces new credit measures / Bailing out Japan Inc: JBIC's operating charter to be modified)
