Japanese PM on fiscal stimulus

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Source: CCTV.com | 12-25-2008 09:15

The Japanese government has approved a record 88.55 trillion yen budget for the 2009 fiscal year.

Wednesday's announcement is a bid to revive Asia's largest economy, amid the worsening global financial turmoil.

Japanese Prime Minister Taro Aso speaks during a yearend press conference at his official residence in Tokyo, Japan, Wednesday, Dec. 24, 2008.(AP Photo/Itsuo Inouye)

Meanwhile, markets across Asia are also threatened by the economic crisis.

The general-account budget penned by the Cabinet of Prime Minister Taro Aso is up 6.6 percent from the initial 2008 budget, reaching an all-time high.

But the Prime Minister said the aggressive fiscal policy will be short-term, and he will observe fiscal discipline over the medium-term.

Taro Aso, Japanese Prime Minister, said, "It is the most challenging task to secure stable financial resources so as to guarantee sustainable social security. The cabinet approved the mid term program to reform social security and the taxation system. We will introduce the taxation reform including raising consumption tax starting in the fiscal year 2011."

Last Friday, the Japanese central bank cut its key interest rate to 0.1 percent, joining the US Federal Reserve in pushing borrowing costs close to zero.

In Japan, the Nikkei 225 stock average closed 2.37 percent down. Shares in Toyota Motor Corporation tumbled 4 percent on Wednesday. Carmakers across Japan are also hit with heavy selling.

Editor:Zhang Pengfei