Photo by ilya_ktsn
The Japanese government is getting down to business of rebuilding the country as they have released an emergency budget of ¥4 trillion.
According to an article by Reuters, the budget will present to parliament next week and is expected to be enacted in May. The emergency budget includes ¥1.6 trillion for infrastructure projects. There is still a question of how to raise the money, but when releasing the budget the government said say it would not issue any new debt to raise capital. In an article in the Wall Street Journal, Government finance Minister, Yoshihiko Noda, said they would use fiscal discipline to cover the costs of restoring the country.
According to the emergency budget, the government will raise the needed capital by eliminating increases to payments to families with children, reinstating some road tolls, reserves from pension fund payouts as well as cutting salaries for politicians and foreign aid programs. Although there are expectations of a tax hike, no figures have been official released.
Some of the projects that will be funded through the budget are the construction of 100,000 temporary housing units, and the cleaning of devastation caused by the March 11 earthquake and tsunami. Naoto Kan, the prime minister of Japan, said in early May he is going to release a plan detailing how to limit the earthquake’s damage on the economy. [RT] [WSJ]