Japan's Cabinet allocates 5.2 billion USD in reserve funds for virus subsidies

Source: Xinhua| 2020-10-16 19:29:17|Editor: huaxia

TOKYO, Oct. 16 (Xinhua) -- Japan's Cabinet on Friday approved funding so that coronavirus-linked subsidy programs could be extended to continue to help firms still reeling due to the pandemic.

The decision made by the Cabinet was to use 549.2 billion yen (5.21 billion U.S. dollars) in reserve funds for fiscal 2020 to finance the extension.

From the reserve funds, 439.1 billion yen (4.16 billion U.S. dollars) will be allocated to finance, for an extra three months to December, a financial assistance program for struggling firms that have had to furlough employees owing to a loss of business and hence revenue due to the virus.

In addition, the latest move will see the government add 86.0 billion yen (816.63 million U.S. dollars) to a subsidy measure already in place to encourage manufacturers here with production hubs overseas to bring them back to Japan.

The measure was initially meant as a means to address supply chain problems as well as domestic economic and employment issues.

Farming and fisheries industries have also been earmarked 24.1 billion yen (228.84 million U.S. dollars) in support of those industries.

"The government is determined to firmly support business continuation and help people stay employed. The additional funds are expected to spur investment in tackling new challenges and lead to economic recovery," Chief Cabinet Secretary Katsunobu Kato told a press conference on the matter. Enditem