Monday, July 25, 2011

Japan adopts a budget for post-earthquake reconstruction

The Japanese parliament finally adopted, Monday, July 25, a supplementary budget of 2000 billion yen  to finance the reconstruction of areas devastated by the earthquake and tsunami of March 11 (five days after adoption by the lower house). This allocation of additional funds is seen as a compromise of waiting, after the first of 4,000 billion yen   and before the discussions relating to a third expected to be approximately 10,000 billion yen.

The damage caused by the earthquake are estimated by the government to 16,900 billion yen. But that cost does not include indirect economic consequences (disruption of transport, electricity grid, the operation of enterprises, etc.). Or the expenses of the nuclear accident in Fukushima.

To finance the supplementary budget, the government plans to issue bonds for five years running, and simultaneously reduce other spending. But uncertainty about the fate of Prime Minister, Naoto Kan, may postpone the preparation. The head of the Japanese government, heavily criticized for his handling of the disaster and accident in the nuclear power plant in Fukushima Dai-Ichi has promised to resign once spent most of the crisis.

No comments:

Post a Comment