The Japanese Finance Minister Hirohisa Fujii said that the government is intending to freeze as much as 2.93 trillion yen ($32 billion) of the extra budget of this year and it will decide how to redeploy the funds by the end of this year.
Japan's Democratic Party is having plans to redeploy part of the 13.9 trillion yen supplementary budget that was approved by the previous administration, worth mentioning that the government's target was freezing as much 3 trillion yen. Yet, the Fujii said it is not significant whether it is 3 trillion yen or 2.9 trillion yen.
However, Fujii mentioned that the government will choose how to use the frozen fund from three options. The government may choose to redirect the funds to realize the party's pledges to provide child care benefits and free high school tuition in the next fiscal year.
The other two options are to use the funds to support the economy and heal the labor market this fiscal year or to reduce the government's debt, worth mentioning that unemployment rate in Japan reached 5.5% pressuring consumer spending and leading to more weakness in retail sales.
Moreover, Naoto Kan the Deputy Prime Minister said today that the government will use part of the frozen funds to create job opportunities, having in mind that Japan's Democratic Party said it need as much as 7.1 trillion yen next fiscal year to fund its election promises.
Japan's gross domestic product grew 0.6% in the second quarter from the previous three months, while it expanded an annual 2.3% after it contracted a revised 11.7% in the first quarter of this year.
Japan's Democratic Party is having plans to redeploy part of the 13.9 trillion yen supplementary budget that was approved by the previous administration, worth mentioning that the government's target was freezing as much 3 trillion yen. Yet, the Fujii said it is not significant whether it is 3 trillion yen or 2.9 trillion yen.
However, Fujii mentioned that the government will choose how to use the frozen fund from three options. The government may choose to redirect the funds to realize the party's pledges to provide child care benefits and free high school tuition in the next fiscal year.
The other two options are to use the funds to support the economy and heal the labor market this fiscal year or to reduce the government's debt, worth mentioning that unemployment rate in Japan reached 5.5% pressuring consumer spending and leading to more weakness in retail sales.
Moreover, Naoto Kan the Deputy Prime Minister said today that the government will use part of the frozen funds to create job opportunities, having in mind that Japan's Democratic Party said it need as much as 7.1 trillion yen next fiscal year to fund its election promises.
Japan's gross domestic product grew 0.6% in the second quarter from the previous three months, while it expanded an annual 2.3% after it contracted a revised 11.7% in the first quarter of this year.
