TOKYO, Dec. 11 (UPI) -- The Japanese government Thursday prepared to approve a $53 billion supplementary budget ahead of a sales tax hike, sources told Kyodo News.
The allocation for this fiscal year will finance a stimulus package meant to ease any negative economic impact from the 3 percent increase in the sales tax going into effect from next April. The new sales tax rate will be 8 percent from the current 5 percent.
The government of Prime Minister Shinzo Abe has put in place several stimulus measures to lift the economy out of its 15-year-old deflation.
The Abe government has decided against issuing additional bonds this fiscal ending next March as tax receipts are expected to be higher than originally estimated with the improving economy, Kyodo said.