Japan wants to spend more on earthquake recovery.

(Baonghean.vn) - Japanese Prime Minister Shinzo Abe announced on April 24th, during a meeting with the National Disaster Response Committee, that his government will allocate an additional 2.3 billion yen from the reserve fund in fiscal year 2016-2017 to support the reconstruction of the earthquake-affected area in Kumamoto.

Japanese Prime Minister Shinzo Abe is expected to allocate additional funds for the reconstruction of earthquake-affected areas.

In addition, the Japanese government is providing a tax relief package worth 42.1 billion yen to areas affected by the earthquake disaster.

Normally, Japan would prepare a supplementary budget at an extraordinary session at the end of the year. However, Abe said the government needed to take more decisive action and flexible measures after his visit to earthquake-affected areas on April 23.

Finance Minister Taro Aso said the exact supplemental budget has not yet been determined because aftershocks are still continuing.

The earthquakes on Kyushu Island have killed 50 people, destroyed at least 5,000 homes, and left approximately 80,000 Japanese people homeless.

Abe's move comes as Japan faces increasing pressure to boost its economic growth and the G7 summit is scheduled to be held in Ise-Shima, central Japan, at the end of May.

The Japanese government's initial plan for disaster-related spending, expected to be announced at the G7 summit, amounts to 10 trillion yen.

Given the current weak consumption and sluggish economic growth, economists predict that Abe will continue to reduce the consumption tax from 10% to 8%.

Thanh Hien

(According to Reuters)