Japan Drafts $154.4 Billion Stimulus

(Posted on NYT > Business about 3 hours ago)

Japan’s ruling party unveiled the country’s biggest-ever economic stimulus plan, a $154.4 billion package that aims to stem a deepening recession. (visit source article)

Meanwhile, the scale of the stimulus has reignited concerns about Japan’s government debt, which already stands at 170 percent of the country’s gross domestic product, one of the highest debt-to-G.D.P. ratios in the world.

Officials have said Japan could issue new bonds to pay for the new fiscal spending.

Mr. Aso said Japan was prepared to address the country’s debt, but only after a recovery. The country will eventually need to raise consumption tax rates, he said.

"We must rebuild our finances in the mid- to long-term," Mr. Aso said, "or the world’s confidence in our country will be lost."