Japan may inject ¥12 trillion to boost economy

Japan's newly elected Shinzo Abe government is likely to pump in additional ¥12 trillion ($136 billion) in the current fiscal year to boost economic growth in the world's third-largest economy, Japan Times reported Monday citing sources.

A third of the stimulus, approximately ¥4 trillion, is expected to be used for public works up to year ending in March which will include ¥100 billion to set up battery-recharging stations for electric vehicles as sought by the ministry of economy, trade and industry.

Abe's Liberal Democratic party which won the December elections defeating former prime minster Yoshihiko Noda-led Democratic party of Japan by a wide margin had promised to take the nation forward to prosperity with policies supporting growth, fighting chronic deflation and a strong Japanese yen.

Abe's cabinet is expected to approve the draft budget on 15 January before submitting it to the Japanese parliament Diet, the sources said.

It is expected that the government will issue new bonds to the tune of ¥5 trillion to finance the budget.

The economy ministry has also asked for ¥100 billion to set up programmes to support companies affected by the strong yen which has resulted in weaker exports, and to improve the energy efficiency of the plants suffering from power shortages due to growing concerns on nuclear power.