Gov't considers setting aside Y1 trillion for stimulus next fiscal year

This tax hike is costing taxpayers plenty of dough! When it's hiked again, we'll need cough up even more money.

Y1tri only? that's equivalent to monthly trade deficit Japan has been running for twenty five consecutive months.

ah yes, just what we need: more public work spending. how about just not raising the tax on food items?

I thought they set aside a large sum this year for stimulus spending. It didn't do much good. Besides, Abe will chicken out of raising the consumption tax again. His ideas tank is empty.

On the article,

The government is borrowing tens of trillions of yen every year as it is, on top of debt in excess of 1,000 trillion yen. So from where is this 1 trillion yen for stimulus spending to be set aside?

I've got a budget guideline for Shinzo Abe’s government: spend less than is collected in tax revenues for a change.

part of a plan to raise revenue for welfare spending.

Not really. It's revenue to pay back money they have borrowed and spent or plan to borrow and spend, and they're finally starting to think about how they can't actually afford the spending.

JeffLee,

This tax hike is costing taxpayers plenty of dough! When it's hiked again, we'll need cough up even more money.

But the government is spending the money on taxpayers, is it not?

rickyvee,

Agreed Japan doesn't need more useless and wasteful public works spending, but not raising the tax on food items would complicate the system and reduce the revenues, most likely meaning the rates would have to be hiked even higher to obtain the same amount of revenues.

This makes ZERO sense, and I suspect it's just flim flam to cover up the impending collapse.

If you own the printer that prints money, why would you print an extra trillion THIS YEAR and set it aside for NEXT YEAR when you can just as easily PRINT MORE next year?

"....subsidies for small- and medium-sized enterprises, the Nikkei said."

So companies are getting lower taxes, PLUS more subsidies. Sweet. Of course, their consumers will have less disposable money to spend now thanks to the consumption tax hike. This really is madness.

"But the government is spending the money on taxpayers, is it not?"

I'm pointing out the irony of needing stimulus to cover a tax hike. Ramping up both stimulus and taxation at the same time makes no sense. Like turning on a humidifier and then a dehumidifier at the same time.

Since the same experiment has already failed 3 times with similarly disastrous results, the dorks want to do it again. Even mice learn from mistakes, but not these vermin.

I'm having less and less confidence in the Japanese government...

But the government is spending the money on taxpayers, is it not?

No, it is spending money on building projects. The contractors and suppliers involved in these projects will be sure to show their appreciation by offering politicians high-paying jobs for doing nothing once they retire from government "service". The family members of politicians and bureaucrats also don't have to worry about getting work when they graduate.

Since the same experiment has already failed 3 times with similarly disastrous results, the dorks want to do it again. Even mice learn from mistakes, but not these vermin.

Disastrous to whom? Certainly not the politicians and their friends, where do you think most "stimulus" spending goes? The situation in America is similar. Almost all of the stimulus spending, which was supposed to help ordinary Americans, ended up going to government union workers. While the private sector sees high unemployment, poor wages, and little growth, government agencies have seen new positions added, and workers have received raises in pay.

@sangetsu03

I believe he's referring to the consumption tax hikes, not stimulus. The hike one in 1997 did indeed trigger the downturn that helped spawned many of today's problems. The same thing is happening now....depressed consumption leading to low growth.

Stimulus was working in 2012 and 2013, but stimulus only works if the policy is properly timed and consistent. the tax hike has thrown a wrench into the works.

The stimulus package is mostly same as USA - to pay the interest on the bonds issued for loans to enable them to print more. By printing more the interest costs are more as the total loan the govt has incurred is more. Death spiral. That's why they want to sell military equipment again and so what better way than to start a new war.....