The Japanese government is set to spend about JPY 3 trillion ($27 billion) in a second extra budget for this fiscal year to boost infrastructure, support for farmers and deal with natural disasters, two government sources with direct knowledge of the matter told Reuters.
The government is planning to issue new bonds worth JPY 1.3 trillion in the current fiscal year to end-March to finance the extra spending.
Japan’s September quarter GDP was downgraded to 2.5 percent earlier this week – the sharpest contraction in more than four years – as natural disasters weighed on capital expenditure.
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