Hammered out in lengthy negotiations among ministries and the ruling parties, the government put forward an ¥11.7 trillion economic stimulus package Friday financed by a ¥1.8 trillion supplementary budget to be submitted to next month's extraordinary Diet session.
The move by Prime Minister Yasuo Fukuda suggests a shift away from the fiscal belt-tightening of former Prime Minister Junichiro Koizumi, who aggressively slashed government costs to curb rising state debt.
Thanks to strong pressure from New Komeito, the Liberal Democratic Party's junior partner in the ruling bloc, the package also includes income tax cuts for low-income earners for the fiscal year ending in March. Details will be mapped out by year's end.
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