Japan said to set target for front-loading public works spending

Tokyo: Japan’s government aims to sign contracts for 80% of public works spending allocated under the new fiscal year’s budget by the end of September as part of efforts to revive a flagging economic recovery, government sources said on Monday.

The target would mean front-loading most of the roughly 12 trillion yen ($107.5 billion) in funds set aside for public works projects under the state budget for the fiscal year that began on 1 April.

By moving up most of the spending to the first half of the fiscal year, the government hopes to give an early boost to an economy skirting recession due to the pain from sluggish global growth and China’s economic slowdown.

Finance minister Taro Aso will present the front-loading target at a cabinet meeting on Tuesday and seek cooperation from other cabinet ministers, the sources said on condition of anonymity.

The government will also consider compiling a fresh fiscal stimulus package and reach a conclusion around the time Japan hosts a Group of Seven summit on 26-27 May, the sources said. Reuters