The government has unveiled a new economic pack age designed to pep up the frail economy and give further impetus to structural economic reforms going into the 21st century. Titled "Economic Rebirth Measures," the package, which was announced last Thursday, focuses on building social infrastructure, such as electronic-communications networks, helping cash-strapped small businesses and startup ventures, and creating jobs.
The new program is worth 18 trillion yen. However, the official growth target for fiscal 1999 has been revised upward only slightly, from 0.5 percent to 0.6 percent, indicating that the government still harbors doubts about economic prospects.
Now in the works is a second supplementary budget, which will reach the Diet floor late this month. To foot the extra bill, the government will issue another 7 trillion yen worth of IOUs, raising the ratio of debt dependency -- new bond issues as a percentage of general-account revenue -- to a record 40 percent or more.