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Nikkei Article Points To Larger Than Expected Fiscal Package

JAPAN

A BBG translation of a Nikkei article notes that Japan's economic stimulus package will be Y55.7tn in terms of fiscal spending, with the Cabinet set to approve the package on Friday

  • The article notes that the issuance of deficit bonds is an inevitable source of funding, but details of the issuance remain undetermined
  • Central government spending surrounding the matter is set to hit ~Y43.7tn.
  • A supplementary budget of Y31.9tn is required to support the measures; while Y5tn of reserves from the initial FY22 budget will be earmarked.
  • This level of spending is above any expectations that we had seen in circulation and is much higher than the previously touted ~Y40tn.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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