On Friday, Japanese Prime Minister Taro Aso announced at press conference at the Prime Minister's Office a ¥15.4 trillion (approximately $150 billion) stimulus plan. In announcing the plan, the Prime Minister cited the rapid shrinkage of Japan's export markets and financial environment.
The program is intended to extend over several fiscal years. The preliminary plan focuses on five areas:
- ¥2.5 trillion to support business activity, including unemployment prevention and assistance and corporate cash-flow support.
- ¥1.9 trillion for social spending, including children’s services and medical and nursing care.
- ¥2.2 trillion in future investment, including support for “low-carbon” initiatives, research and development and infrastructure projects.
- ¥2.4 trillion in regional assistance.
- ¥1 billion in tax cuts, including a tax cut for gifts used to acquire residences.
In announcing the Prime Minister stated that he plans to swiftly draft and submit a supplementary budget and related bills, and urged swift action by the Diet.