Calls for more stimulus are growing in Japan, with some Liberal Democratic Party members pushing for an extra budget that’s extra big.
They are lobbying for outsize spending, and for bond issuance to cover any shortfall, even as the markets indicate displeasure with the possibility that the administration of Prime Minister Sanae Takaichi could overdo stimulus measures and push Japan’s economy and balance sheet too far.
Takaichi is set to propose a stimulus package of about ¥17 trillion ($110 billion), including tax breaks, according to local media reports. Rebel LDP legislators want her to spend more in support of the economy: ¥25 trillion. The pro-spending group of 70 lawmakers adds that the government should not hesitate to issue bonds if that’s what’s needed.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.