Japan unveils new $80.6B stimulus package

TOKYO. December 8. KAZINFORM. Japan's government on Tuesday unveiled a new stimulus package worth nearly $81 billion to keep the fragile recovery in the world's second-biggest economy from veering off track; Kazinform refers to China Daily.

Prime Minister Yukio Hatoyama and his Cabinet agreed to 7.2 billion yen ($80.6 billion) in new spending after days of negotiations with coalition partners. The announcement had been expected on Friday but was delayed by disagreements.

The package is Hatoyama's first major policy deal since his Democratic Party swept into power this summer promising help for workers and families. Since then, the country's economic turnaround has been under threat from intensifying deflation and a strong yen.

The package includes measures to bolster employment, extend consumer incentives to buy eco-friendly products and provide support for small and medium-size firms hurt by the strong yen.

The measures will be financed by the second extra budget for this fiscal year through March 31. Finance Minister Hirohisa Fujii said he expects the Cabinet to approve the supplementary budget next week; Kazinform cites China Daily. See www.chinadaily.com.cn for full version.