The lower chamber of japanese Parliament on Wednesday approved a new budget extraordinary record of about 32.000 billion yen (262 billion euros) required to be supplied to a second gigantic plan to support the national economy, severely affected by the pandemic.
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More than one-third of this windfall should be used to finance a government fund to provide interest-free loans to small and medium-sized enterprises in difficulty, in addition to new mechanisms of credit from the Bank of Japan (BoJ).
The rest must be used to fund various measures, such as helping firms to pay their rents and their employees in partial unemployment, subsidize municipalities in crisis, strengthen the health system and in medical research, or even offer rewards to the nursing staff, students désargentés as well as to single-parent families.
This budget should be finally approved Friday by the upper House of Parliament. He must deal with the heart of a second plan of massive support of the economy of 117,000 in billion yen (958 billion euros at current prices).
This is exactly the same amount as a first support plan announced at the beginning of April, which was also in need for a huge budget increase, particularly to fund a lump sum of aid of 100,000 yen (over 800 euros) is assigned to each resident of the country.
Consumption leaded
In total, the aid of the State to support businesses and households in the country is expected to reach the astronomical sum of 234.000 billion yen (more than 1.900 billion euros), with the bulk in the form of loans.
Japan has been relatively unaffected by the pandemic on the health plan, with 17.251 case of contamination identified to date, 919 dead.
But faced with rising cases and the risk of a saturation of the hospitals, the government had introduced the state of emergency in the country in April-may, in order to encourage people to stay home at the maximum, and some shops not essential to close temporarily.
These measures of prevention have completed plague household consumption, which was already poor before the crisis of the sars coronavirus.
household spending fell 11.1% in April year on year, a record since the beginning of comparable statistics in January 2001, according to official data published at the beginning of June.
read also : Japan : household consumption has shrunk by 11.1% in April
This news of a sharp drop in the gross domestic product (GDP) nippon in the second quarter, while the country is already in a recession in the beginning of the year, for the first time since 2015.
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