Japan stimulus measures should focus on economic growth, says head of ruling party tax panel

By Yoshifumi Takemoto

TOKYO, Oct 14 (Reuters)Japan must compile another extra budget to have enough funding to boost economic growth and paying for disaster preparations, a ruling party lawmaker said on Wednesday.

Akira Amari, the head of the Liberal Democratic Party’s tax panel, said any new stimulus measures should shift focus to boosting economic growth from providing support for current conditions.

Amari, speaking during a group interview with media, also said large businesses heavily reliant on foreign tourism could expect to start facing capital shortages next year.

His remarks came after local media reported on Tuesday that Prime Minister Yoshihide Suga plans to order his government to compile extra stimulus measures as early as November, a move that would highlight the government’s resolve to return growth to levels last seen before the COVID-19 crisis.

Japan has already rolled out a combined $2.2 trillion in two stimulus packages in response to the health crisis, including cash payments to households and small business loans to help them withstand the blow to demand.

(Reporting by Yoshifumi Takemoto; Writing by Daniel Leussink; Editing by Clarence Fernandez and Gerry Doyle)

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