Prime Minister Ryutaro Hashimoto announced Thursday that his government will double the 2 trillion yen tax cut for this year and implement a 2 trillion yen tax cut in 1999.
The announcement marks a widely anticipated policy reversal aimed at restoring confidence in the economy, both at home and abroad.
During an afternoon news conference at the Prime Minister's Official Residence, Hashimoto openly stated for the first time that he would put fiscal reconsolidation on the back burner and carry out a wide range of pump-priming steps to get the economy back on track.