10 Apr 2009

Japan unveils $US150b stimulus package

10:41 pm on 10 April 2009

Japan has formally unveiled its record $US150 billion stimulus package as it seeks to revive its flagging economy.

Prime Minister Taro Aso said the plan - worth about 3% of its gross domestic product - aimed to protect livelihoods and to foster future growth.

The 15.4 trillion yen package includes measures to boost fuel-efficient vehicles and consumer electronics.

Japan's economy has been battered by a collapse in exports and is facing its deepest recession since the Second World War.

Japan's ruling coalition plans to put the stimulus package before parliament by the end of April.

"We are implementing a resolute policy in the form of economic crisis measures in order to protect the livelihoods of the people," Mr Aso said.

"The first of our objectives is to prevent the economy from falling through the floor. Another objective is to give a sense of security to the people."

This is the government's third stimulus plan in the past year. It comes on top of 12 trillion yen of spending in earlier packages, as well as tax breaks and cash handouts.

It also creates a financial safety net for temporary workers, boost struggling firms and support regional economies.

Mr Aso said the new steps would be partially funded by issuing new government bonds.

Japan has been worst-hit among advanced nations by the global economic downturn.