Japan likely to prepare new stimulus package to boost virus-hit economy, says minister

Japan may consider rolling out a new stimulus package, along with a possible fourth extra budget, amid the government’s state of emergency expansion triggered by surging coronavirus infections. This development was divulged by a cabinet minister on Thursday.

On Wednesday, Prime Minister Yoshihide Suga widened the ongoing state of emergency from Tokyo area to seven more prefectures.  These emergency measures could go beyond the one month period initially set by the government.

The government, which approved a third additional budget for the fiscal year through March last month to finance an additional $708 billion in stimulus spending, has so far committed around $3 trillion to spending to help the economy rebound from its pandemic-induced slump.

Japan is now the heaviest-burdened industrial world, with public debt reaching 2.5 times the annual economic production.