To finance reconstruction in areas devastated by the Great East Japan Earthquake, ideas have been floated for issuing debt or raising the consumption tax . Below are questions and answers about the proposals.
What is the idea behind issuing state debt for reconstruction?
The government and ruling bloc are considering a special bond issue to finance an extraordinarily expensive reconstruction effort. The money raised, along with money raised from charity and passed on to the government, would be combined and managed under an account separate from the general state budget to finance reconstruction.