Government Emergency Economic Measures Determined Project size totaling about 108 trillion yen

Government Emergency Economic Measures Decision Project size totals about 108 trillion yen April 7 18:43

In response to the spread of the new coronavirus, the government has decided to implement emergency economic measures that will bring the total business scale to about 108 trillion yen, including payment of 300,000 yen to households whose income has decreased due to the spread of the new coronavirus.

The government held a special cabinet meeting on the evening of March 7, and decided to take urgent economic measures following the spread of the new coronavirus.

In this system, we will pay 300,000 yen per household mainly for households whose incomes are decreasing and their living is difficult, and we will apply by themselves so that they can arrive quickly.

In addition, to support child-raising households, 10,000 yen per child will be added to households receiving child benefits.

In addition, benefits for small and medium-sized enterprises are provided to businesses whose business income has decreased by 50% or more compared to the same month of the previous year, 2 million yen for small and medium-sized enterprises, and private businesses including freelancers. The main policy is to pay the reduced amount up to 1,000,000 yen each.

On the other hand, in order to maintain employment, the employment adjustment subsidy is to be expanded until the end of June, and if layoffs are not made, the subsidy rate will be raised to 9/10 for small and medium-sized enterprises and to 3/4 for large enterprises. It also targets regular workers.

In addition, the government will postpone the payment of taxes and social insurance premiums totaling 26 trillion yen.

In addition, the company aims to stock up on 2 million people by the end of this fiscal year for the influenza drug Avigan, which is expected to be effective as a remedy.

The emergency economic measures include some of the economic measures decided last December, with a total business size of about 108 trillion yen and fiscal expenditures of about 39 trillion yen.

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New measures: business scale of about 86.400 billion yen

In this emergency economic measure, the "business scale" is about 10.8 trillion yen and the "fiscal expenditure" is about 39.5 trillion yen.

Among them, the economic measures of 26 trillion yen in business scale decided last December to prepare for recovery and reconstruction from a series of disasters and the risk of economic downturn are 19 trillion In addition to about 800 billion yen, this includes about 2.1 trillion yen in business scale, combining the first and second emergency response measures compiled up to last month.

As a newly added measure, the business scale will be about 86.4 trillion yen, of which the fiscal expenditure will be about 29.2 trillion yen.

"Business scale" and "fiscal spending"

Economic measures are represented by two figures: "business scale", which indicates the scale of the entire measure, and "fiscal expenditure," which indicates national expenditure.

According to this measure, the business scale exceeds the economic measures determined in April 2009 following the Lehman Shock in April 2009 of 56.8 trillion yen, and is the largest ever in Japan, equivalent to 20% of Japan's GDP = gross domestic product.

Fiscal expenditure refers to the sum of expenditures from the national general account and special accounts, plus the burden of local governments and FILP.

The size of the business is based on the total amount of the measures, including this fiscal expenditure, the amount of loans and guarantees by financial institutions, the grace of payment of taxes and social insurance premiums, and the expenditure of private companies participating in the business. Fiscal expenditure ".

Expert "Economic measures will not improve the economy with spread of infection"

Regarding the emergency economic measures, Koya Miyamae, senior economist at SMBC Nikko Securities, said, "In addition to the policy now required to support income while economic activity is halted, after the infection has subsided, We can also appreciate the prospective policy of economic stimulus, and given the size of Japan's economy, the scale of necessary measures as a whole could have been secured. "

However, "While the spread of infectious diseases continues, no matter how much economic measures are inflated, it is not possible to bring about an economic improvement. The borrowing will increase and the burden will become heavy for those who live. If the spread of infection does not stop, the economic situation will not improve. "

In addition, Mr. Miyamae stated in an “Emergency Declaration” targeting seven prefectures such as Tokyo, “It is appropriate to issue an emergency declaration to stop the spread of infection and make a short-term decisive battle, aiming to end the infection in a short time. I think that if infections can be controlled in a short period of time, there is a possibility that the economy will recover in the future and fiscal deterioration will be stopped to some extent. "