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Japan said to mull extra spending in 2016 of about 3t yen

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Japan's government is currently discussing supplementary spending of around 3 trillion yen (S$38.4 billion) for the current fiscal year, according to two officials familiar with the talks.

[TOKYO] Japan's government is currently discussing supplementary spending of around 3 trillion yen (S$38.4 billion) for the current fiscal year, according to two officials familiar with the talks.

The Abe administration would like to keep a lid on the extra spending figure for the period through March 2017, as lawmakers press for more, according to the government officials, who asked not to be named as the talks are private.

The spending is to be part of a broader fiscal package that includes loans and other items designed to help bolster growth. A range of figures have been reported by local media on the overall program, including one from the Nikkei newspaper on Friday of 30 trillion yen.

Prime Minister Shinzo Abe vowed to take "bold" action to support the economy earlier this month after a convincing win for his ruling party in an upper house election. He ordered his ministers to come up with a package, setting alight speculation in markets about the size and composition of the measures.

The exact timing of an announcement on the spending hasn't been made.

Meanwhile, the Bank of Japan's board is set to meet next week to consider any changes to its record monetary stimulus program.

BLOOMBERG