FX.co ★ Japan earmarks 50 bln. for coping with earthquake aftermath

Japan passed a 4 trillion yen budget(USD 50 bln.) for 2011-2012 financial year to overcome the disaster effects of March 11 earthquake effects, Reuters informs. The major budget was passed on March 29; it implies the maximum spending of 92.4 trillion yen (about 1.1 trillion US dollars).
The ruling party poorly supported by Upper house and the opposition reached a consensus concerning the budget for the first stage of post-disaster national rebuild. The priorities to earmark the budget to are constructing temporary housing and take ruins away. 1.2 trillion yen have been allocated for the infrastructure recovery.
The major source of the first emergency budget is cutting expenditure in other spheres. At the same time, BBC News highlights that Japan’s government may face the problem of funding the following budgets for rebuild. The national debt has come to be twice as larger than the GDP of Japan.
Japan’s Finance Minister Yoshihiko Noda announced that no definite decision was made on funding of the budgets to come. Yet, he added that if the government issues new State Bonds, they will be managed separately from other obligations. The damage caused by the earthquake amounts to USD 300 bln.
According to Reuters, Japan’s Prime Minister Naoto Kan will be able to make another budget pass through the two Parliament Houses only through leaving his post. The actions taken by Head of the government after the earthquake brought about huge waves of protest within and outside the party.
The most large-scale earthquake for the entire Japan’s history occurred on March 11. It was shortly followed by tsunami and emergencies at the Nuclear Power Plant. The toll of the disaster includes 26 thousands of people.