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Sub-anchor: Japan unveils a 28 trillion yen economic stimulus plan

CCTV.com

08-02-2016 16:16 BJT

The Japanese government just put out details of its 28.1 trillion yen stimulus package .

The package consists of around 13.5 trillion yen fiscal measures, namely 6.2 trillion yen for infrastructure, 3.4 trillion yen for improving the country's population mix, 2.7 trillion yen disaster relief for the earthquake earlier this year and the 2011 tsunami; and 1.3 trillion yen to offset the small business uncertainty after the Brexit.

The stimulus also includes 7.5 trillion yen by the national and local governments, and features 6 trillion yen from the Fiscal Investment and Loan Programme, which is long term low interest loan sponsored by special issuance of bonds.

But precisely how the spending will be financed is unclear, though the government is considering issuing construction bonds. Analysts say the package would push up real GDP by a mere half a percent this year, and they are worried about Japan's ability to fix the massive debt problem.

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