CORRECTED – CORRECTED-Japan approves record $1 trln budget amid debt concern

(Corrects headline to … $1 trillion …, not … $1)
(For more stories on the Japanese economy, click [ID:nECONJP])

TOKYO, March 24 (BestGrowthStock) – Japan’s parliament approved on
Wednesday a record $1 trillion budget for the fiscal year from
April, with an all-time high of 44.3 trillion yen ($490 billion)
in new bond issuance underlining the country’s tattered finances.

Prime Minister Yukio Hatoyama has said he sees no need for
economic stimulus now as the risk of a double-dip recession is
receding. But he added that the government should be ready to act
if necessary given lingering downside risks such as unemployment.

A tiny coalition partner in the Democratic Party-led
government has called for 11 trillion yen in fresh stimulus to
boost the economy before an election expected in July, amid
sliding support for the government. [ID:nTOE62N06B]

But analysts said big spending is unlikely as public debt is
already nearly twice the size of Japan’s GDP, the highest ratio
among its peers in the industrialised world. [ID:nTKF106890]

The government is keen to contain any further increase in
bond issues amid the threat of a credit ratings downgrade.

Most economists expect a strong recovery in Asia to help
Japan sustain its export-driven pickup from its worst recession
in post-war history. [ECILT/JP]
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($1=90.45 Yen)
(Reporting by Tetsushi Kajimoto; Editing by Joseph Radford)

CORRECTED – CORRECTED-Japan approves record $1 trln budget amid debt concern