Japan approves $274 billion stimulus package

The Japanese cabinet on Tuesday approved an economic stimulus package worth 28.1 trillion yen ($274 billion) to support the country's sluggish economy in the wake of Britain's decision to leave the European Union.

The package was approved after the Bank of Japan decided to take additional monetary easing at a policy meeting last week, Xinhua news agency reported.

The package includes additional expenditure by the state and local governments of 7.5 trillion yen, of which 1.7 trillion yen will be allocated to build infrastructure to boost tourism and agriculture, and 2.5 trillion yen to enhancing welfare such as child and nursing care.

The government will also allocate 2.7 trillion yen to rebuild areas hit by massive earthquakes in 2011 and April this year.

Another 600 billion yen will be used to help small and medium-sized companies dealing with possible negative effects from Britain's decision to leave the EU.

The government estimates the stimulus would push up the GDP by around 1.3 per cent in the next two years.

--IANS

sm/py/vt