09:30 | 29/04/2016 Global Economy
Japan's Prime Minister Shinzo Abe ordered his government on Sunday to compile an extra budget package to fund reconstruction from recent earthquakes that hit the south of the country, with an aim to put it into effect by June 1.
Japan's PM Shinzo Abe (3rd from R) speaks in a meeting on recent earthquakes in Kyushu on April 24 (Photo: Kyodo)
The move comes as Abe faces increasing pressure to inject more economic stimulus to reignite growth in a stagnant economy ahead of a Group of Seven (G7) summit his government will host in late May in Ise-Shima in central Japan.
Abe told a meeting of his disaster-response committee that the government needs to compile a supplementary budget with an intention to bring it into effect during this session of parliament, which ends on June 1.
The earthquakes on the island of Kyushu killed about 50 people and damaged at least 5,000 houses, forcing about 80,000 people out of their homes as of Friday.
The disaster-related spending will be on top of a fiscal stimulus plan of up to Yen10 trillion (US$89.46 billion) that Abe is expected to announce around the time he hosts the G7 summit.
The government has already set aside Yen2.3 billion from a Yen350 billion reserve fund for the 2016/17 April-March fiscal year for the disaster-hit region. In addition, it will offer Yen42.1 billion in regional tax subsidies./.