Ruling party unveils spending plans of at least $124 billion: LDP expects package to boost stagnant economy, but talks hit snag over tax policy

Article Abstract:

The Liberal Democratic Party of Japan has unveiled its $124 bil spending package which it hopes to use to stimulate the dormant economy. The spending package, which amounts to about 3% of the country's GDP, is being sharply criticized by the US government, since the spending plan does not include drastic tax cuts, that the US views as a better alternative for stimulating the economy. The reluctance of the LDP to impose tax cuts is due to the policy of Prime Minister Hashimoto of prudent budget deficit control. The LDP's spending plans involves mainly new spending in public works.

Public Finance Activities, Fiscal Policy, Administration of Urban Planning and Community and Rural Development, Economic Development NEC, Economic development, Liberal Democratic Party (Japan), Hashimoto, Ryutaro

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Tokyo unveils deregulation steps

Article Abstract:

Japan has announced a package of deregulation covering 1,700 steps and addressing sectors ranging from finance to pharmaceuticals. The deregulation is aimed at spurring economic growth and eliminating efficiency. However, both domestic and foreign-owned firms are not as optimistic about the ability of the government to implement the plan. The announced guidelines do not contain enough details to ensure the scheme's success.

Planning, Deregulation

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Tokyo edges toward using public funds to help banks

Article Abstract:

Japan is planning to use public funds to help its banks from folding. The announcement increases the possibility of implementation. However, the plan will go against the banking reforms promised by Prime Minister Ryutaryo Hashimoto as the 'Big Bang' plan calls for letting banks handle their own problems. The move however, could increase investor confidence in the country.

Economic Programs, Administration of Economic Programs, Banking industry, Management, Interpretation and construction, Finance, Financial markets

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