Japan wants more spending on earthquake recovery

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

Japanese Prime Minister Shinzo Abe plans to add extra budget for reconstruction of earthquake-affected areas

In addition, the Japanese government also provided a tax subsidy package worth 42.1 billion yen to areas affected by the earthquake disaster.

Normally, Japan would set a supplementary budget at an extraordinary session at the end of the year. However, Mr. Abe said the government needed to take more drastic and flexible measures after visiting the earthquake-affected areas on April 23.

Finance Minister Taro Aso said the extra budget has not been finalized yet as aftershocks continue to occur.

Earthquakes on the island of Kyushu have killed 50 people, destroyed at least 5,000 homes and left about 80,000 Japanese people homeless.

This move was made by Mr. Abe in the context that Japan is facing increasing economic growth pressure and the G7 summit will be held at the end of May in Ise-Shima, central Japan.

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

With weak consumption and sluggish wage growth, economists predict Mr Abe will continue to cut the consumption tax from 10% to 8%.

Thanh Hien

(According to Reuters)