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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NEW DELHI—With India facing an economic crisis brought on by the coronavirus pandemic, Prime Minister Narendra Modi is looking to deregulation as the cure.
The changes pushed through in recent weeks by his Bharatiya Janata Party, affecting everything from factory floors to farming, have so far led to more confusion than acclaim, but economists say the economic overhaul could ultimately improve India’s troubled growth prospects.
“The reforms are in the right direction. They are bold steps,” said Ashok Gulati, an Indian agricultural economist and professor at the Indian Council for Research on International Economic Relations.
India’s economic growth was slowing alarmingly even before the pandemic abruptly threw it into reverse, starting in March. In the months that followed, the economy contracted by almost one-quarter, the sharpest blow suffered by any of the world’s largest economies during the coronavirus-induced downturns.
The poor have been particularly hard hit, as workers who had migrated to cities to support families in rural areas returned home when those jobs disappeared. With many returning to farming, they now depend more than ever on India’s heavily regulated agricultural economy.
Mr. Modi, whose government’s perilous financial state has left few options for addressing the crisis, pushed through a grab bag of dramatic regulatory changes last month with little warning and no debate in Parliament. In a voice vote—obscured by technical glitches with the public broadcast of the proceeding that made it difficult to determine which parliamentarians actually supported the measures—the BJP passed a flurry of politically difficult changes.
In a single swoop, it dismantled a longstanding regulatory system that forced farmers to sell most of their crops through government-approved wholesale markets dominated by traders and middlemen instead of directly to consumers or food processors.
Then the BJP passed a series of new labor measures that increased the number
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