JAPAN is considering a fresh stimulus package worth over US$929 billion that will consist mostly of financial aid programs for companies hit by the coronavirus pandemic, the Nikkei newspaper said yesterday.

The package, to be funded by a second extra budget for the current fiscal year beginning in April, would follow a record US$1.1 trillion spending plan deployed last month to cushion the economic blow from the pandemic.

The move would be the latest effort by Tokyo to support an economy on track for its deepest slump in postwar history, as the pandemic crushes businesses and consumer spending.

Japan ended state of emergency measures for most regions and plans to hold a panel discussion to decide whether to lift them in remaining places, including the Tokyo metropolitan area.

“Japan’s economy is in an extremely severe state and we need to pull out of this situation as soon as we can,” Finance Minister Taro Aso told reporters Friday.

The second extra budget, worth 100 trillion yen (US$929.45 billion), will include 60 trillion yen for expanding loan programs that state-affiliated and private financial institutions offer to firms hit by the virus, the paper said.

Another 27 trillion yen will be set aside for other financial aid programs, including 15 trillion yen for a new program to inject capital into ailing firms, it said.

The government is expected to approve the budget, which will also include subsidies to help companies pay rent and wages as they close businesses, at a cabinet meeting Wednesday.

Japan’s economy slipped into recession in the last quarter, and analysts expect another 22 percent contraction in the April-June period due to the hit from the health crisis. (SD-Agencies)