Go Finance Reporting in TOKYO - Japan's extra budget worth more than $ 50 billion to finance reconstruction efforts after the tsunami that hit. Japanese Prime Minister Naoto Kan approved a budget of 4.1 trillion yen, equivalent to USD50 billion. Japanese Parliament is expected to pass the budget next week.
"This is the first step toward rebuilding Japan after a major disaster ,"said Finance Minister Yoshihiko Noda , as quoted by AP , on Friday ( 04/22/2011).
The government will allocate about 1.2 trillion yen to improve roads and ports damaged by the earthquake and tsunami. The disaster destroyed much of Japanese industry in the Northeast and killed more than 25,000 people. The government will spend more than 362 billion yen to build temporary houses for victims of disasters, and 352 billion yen for rubble clearing.
The government says the cost of the earthquake and tsunami could reach USD309 billion. It made natural disasters were recorded as the most expensive disaster in the world. Japan must increase four-fold sales tax because it deals with high budget deficits.
Economists in Japan illustrates, the industrial countries say Japan's public debt is more than twice the gross domestic product did not make many choices. Japan also should gradually raise the sales tax. Currently as high as five percent, until a later date as high as 20 percent. (GoFinance)
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