Financial Sources for Economic Stimulus

* Written by Yoichi TAKAHASHI, PPPC Chairman / Kaetsu University Professor

 Seemingly the Cabinet will draft an economic stimulus for a concern
that the scheduled tax hike will have negative impacts on the nascent
economic recovery. While its scale is said to be some 5 trillion yen,
the Finance Minister Taro Aso said on September 13 that it would be
unnecessary to issue additional government bonds to raise the
necessary funds.
 It is already absurd enough to compile a supplementary budget in
order to prevent the scheduled-tax-hike originally aimed at
reconstructing the finance from actually hitting the economic
condition. Further, it would be just ridiculous to issue the
government bonds to squeeze the money for that supplementary budget.
The Ministry of Finance seems to be busy avoiding such public
censures.

 Then, let’s consider possible financial sources for the
supplementary budget.

・The remainder of the initial budget FY 2012 in the general account =
  1.2952 trillion yen

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