The economy-boosting extra budget being formulated for fiscal 2012 may be worth around ¥12 trillion — including more than ¥4 trillion for public works projects, sources said Monday.
Prime Minister Shinzo Abe’s government is close to cementing the size of the supplementary budget, which would cover the rest of the year ending in March. The ruling bloc, led by his Liberal Democratic Party, won December’s general election by promising huge fiscal spending to fight chronic deflation and address the strong yen.
Government offices were required to submit their requests for the emergency spending plan by Monday. Abe’s Cabinet is expected to approve the draft budget on Jan. 15 before submitting it to the Diet, the sources said.
Read the rest of the story: Size of extra budget may test ¥12 trillion.