Statement by Yasuchika Hasegawa, Chairman of Keizai Doyukai
On Cabinet Approval of Economic Stimulus Package
December 27, 2014
Chairman, Keizai Doyukai
- Abe Cabinet approved an economic stimulus package today. We appreciate government’s swift action in finalizing the package in urgent need in order to prop up the current sluggish economy.
- Another positive remark goes to the latest policy decision to finance the stimulus package through more-than-expected tax revenue and surplus, while squeezing this fiscal year’s issuance of new government bonds, as it will contribute to the fiscal consolidation, a pressing issue we are facing.
- The slowing consumer spending is well taken care of by the stimulus package. It also covers the implementation of the structural and system reforms in the fields including medical care, agriculture, energy, and labor market. This will improve the corporate earnings power and subsequently expand the consumer spending. We expect the government’s steady implementation of the package.
- Items covered by the package from a viewpoint of revitalizing rural economies that have not well enjoyed positive effects of Abenomics include (1) the introduction of the new subsidies for municipal governments, (2) the issuance of premium shopping coupons, and (3) employment support measures for the youth who return home in rural areas for job hunting. We expect each municipal government to exercise its ingenuity in utilizing the local value together with “The grand strategy and the long-term vision for local economies, younger generation, and jobs” approved by the Cabinet today. Companies are requested to make a challenge by taking the regional rebirth as a business opportunity.