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Yahoo! My Yahoo! Mail More Yahoo! Services Account Options New User? Sign Up Sign In Help Yahoo! Search web search Home Singapore Asia Pacific World Business Entertainment Sports Technology Singapore Asia Pacific World IMF hails Japan's plan to boost social spending AFP - Monday, October 5 Send IM Story Print IMF hails Japan's plan to boost social spending Slideshow: Full Photo Coverage: Business & Economy ISTANBUL (AFP) - – The International Monetary Fund welcomed on Sunday the new Japanese government's plan to use stimulus funds to boost social spending, saying it would bolster much-needed private demand. "We certainly welcome the government's intentions to improve public sector efficiency in a way that will allow them to reform social spending in a way that's going to raise imports and demand," Anoop Singh, director of the IMF's Asia Pacific department, said at a news conference in Istanbul ahead of annual meetings of the IMF and the World Bank. Japan's centre-left Prime Minister Yukio Hatoyama, who took office last month after his Democratic Party of Japan won a landslide election victory that rejected the long-dominant conservative Liberal Democratic Party, pledged to freeze part of his predecessor's supplemental budget to put more money into the pockets of ordinary people. Former premier Taro Aso in May pushed a supplementary budget through parliament to fund economic stimulus measures. Singh said it was "too early" to assess the economic impact of the new government's plan to reallocate a portion of the stimulus budget, which has yet to be presented to the legislature. The spending plan would provide cash allowances for families, free high-school education and eliminate highway tolls. Japan as well as others in the region "recognize the importance of developing new drivers of growth," Singh said. The Japanese economy, the second biggest in the world, was hard hit by the global economic crisis because of its heavy dependence on exports. The economy returned to positive growth in the April-June period after a year-long recession as exports improved, but deflation is deepening amid weak domestic demand, while a strong yen is threatening exports. The IMF projects the Japanese economy will grow 1.7 percent in 2010, following a brutal 5.4 percent contraction in 2009. The Japanese finance minister, Hirohisa Fujii, said "the economy is going to be driven by domestic demand," after talks with his counterparts in the Group of Seven richest countries on Saturday. Recommend Send IM Story Print Related Articles Reinhard Mohn, who built up Bertelsmann, dead AP - Monday, October 5 China needs time to raise private demand, IMF says Reuters - Monday, October 5 Kuwait M3 growth at 18.8 pct in Aug, almost unchanged Reuters - Monday, October 5 IDB group buys HSBC headquarters in New York Reuters - Monday, October 5 Scotiabank eyes overseas deals; likes SE Asia Reuters - Sunday, October 4 News Search Top Stories Argentine folk legend Mercedes Sosa dead at 74 T-Rex fails to impress Las Vegas bidders Berlusconi's Fininvest hit with 750 mln euro payment Credit crunch clouds uneven European rebound US rolls out massive swine flu vaccination campaign More Top Stories » Related Full Coverage China Economychina economy All Full Coverage » ADVERTISEMENT Most Popular Most Viewed Most Recommended Oldest hominid skeleton sheds light on human origins Four-winged dino may be missing link in bird debate Polanski agreed to pay victim 500,000 dlrs to end suit: report T-Rex fails to impress Las Vegas bidders Tongan banker rescues people, cash from tsunami More Most Viewed » Ozone hole smaller in 2009 than 2008: WMO Nanoparticles could pose threat to humans: scientists Oldest hominid skeleton sheds light on human origins Implanted tooth helps blind US woman recover sight More Most Recommended » Elsewhere on Yahoo! Financial news on Yahoo! Finance Stars and latest movies Best travel destinations More on Yahoo! News Home Singapore Asia Pacific World Business Entertainment Sports Technology Subscribe to our news feeds Top StoriesMy Yahoo!RSS » More news feeds | What are news feeds? Also on Yahoo Answers Groups Mail Messenger Mobile Travel Finance Movies Sports Games » All Yahoo! Services Site Highlights Singapore Full Coverage Most Popular Asia Entertainment Photos Copyright © 2009 Yahoo! Southeast Asia Pte. Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. Terms of Service | Privacy Policy | Community | Intellectual Property Rights Policy | Help

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