Japan’s stimulus package to help pay more for oil, bill says
TOKYO, Nov. 12 (Reuters) – Japan’s economic stimulus package will include measures to cushion the blow to businesses from rising oil prices, a draft government plan reviewed by Reuters showed, highlighting the pain that Global commodity prices have inflicted on the nation’s resource poor.
Prime Minister Fumio Kishida, whose position was bolstered by an election victory last month, pledged to craft a stimulus package “worth tens of billions of yen” on November 19 to boost the third global economy reeling from COVID-19.
The draft makes no mention of the full amount of spending or new borrowing, which will likely be finalized in negotiations with ruling party lawmakers next week.
Soaring global crude oil prices, along with a chip shortage and supply constraints, added to the woes of a trade-dependent economy likely to have subsided in the third quarter as pandemic restrictions and Supply bottlenecks undermine consumption and production.
“We will prepare flexible measures against soaring energy costs in the next stimulus package,” Economy Minister Daishiro Yamagiwa told reporters on Friday.
“The measures will focus on sectors such as agriculture, forestry and fishing as well as logistics companies, which cannot live without using fuel.”
Other measures to be included in the package are measures to increase domestic production of semiconductors as well as a 10 trillion yen ($ 87.5 billion) fund to give universities more resources to boost scientific and technological research, depending on the project.
($ 1 = 114.2500 yen)
Reporting by Takaya Yamaguchi and Leika Kihara; Additional reporting by Kantaro Komiya, Tetsushi Kajimoto; Editing by Christopher Cushing and Lincoln Feast.
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