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Japan Unveils Extra Spending Package


The Japanese government has unveiled an extra spending package of $16.5 billion. Tokyo hopes the money will help kick start the country's struggling economy.

The goal of the multi-billion dollar package is to stimulate growth and turnaround Japan's troubled economy, which is expected to contract as much as 1.5 percent in the current fiscal year.

The government unveiled the plan as Japan's economic outlook is darkening with output slipping and unemployment at a post-war high.

Finance Masajuro Shiokawa says the government will earmark half of the package, or $8 billion, for job creation.

He also notes that the plan would not violate a pledge by Japanese Prime Minister Junichiro Koizumi to cap government borrowing to rein in Japan's runaway budget deficit.

However, Tokyo says it may also implement a second extra budget, which would finance anti-terrorism costs.

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