Japan plans 1 trillion yen stimulus for second tax rise - Nikkei

FXStreet (Bali) - Japan is considering a new stimulus package worth over 1 trillion yens during the 2015 fiscal year, Nikkei reports, in order to assist the economy ahead of an expected second sales tax hike for October next year.

As Nikkei notes: "The cash reserve, to be earmarked in next fiscal year's budget, would enable the government to act flexibly to kick-start the economy if the tax is in fact raised as scheduled. The money can be spent on any stimulus measures, including public-works projects and subsidies for small and midsize businesses, depending on economic conditions."

"With an end to Japan's nagging deflation finally in sight, Prime Minister Shinzo Abe's administration choose not to set aside stimulus spending funds in fiscal 2013 and 2014. But with a final decision on raising the sales tax to 10% from 8% expected as soon as early December, the government is considering a safety net to prevent the economy from faltering" Nikkei sources informed.