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Japan's lower house passes stimulus budget plan

(Xinhua)
Updated: 2009-01-13 23:09

TOKYO - A second supplementary budget for fiscal 2008, aimed at stimulating the economy, cleared Japan's powerful House of Representatives Tuesday, despite the opposition's protests to an unpopular cash handout plan included in the budget proposal.

The 4.79 trillion yen (US$54 billion) extra budget for the year through March and related bills passed the lower house's plenary session with the backing of the ruling Liberal Democratic Party (LDP) and its coalition partner the New Komeito party.

The extra budget includes support measures for households, small businesses and regional economies hit hard by the current economic slowdown. It also features the 2.04 trillion yen cash handout, under which a minimum of 12,000 yen is to be disbursed per person.

The main opposition Democratic Party of Japan (DPJ) is opposed to the cash handout, which it sees as a vote-buying tactic by the ruling bloc.

The DPJ, which is seeking to remove the cash handout from the extra budget, plans to boycott deliberations in the opposition- controlled House of Councillors if the ruling parties reject its calls.

Japanese Prime Minister Taro Aso suggested an extra budget for fiscal 2009 at an early time if additional economic measures are needed.