The government plans to expand economic assistance for small and midsize companies and people struggling to make a living as the pillar of additional economic measures for those affected by the outbreak of the new coronavirus, it has been learned.
The government Monday also decided to implement ex post measures to stimulate the economy after the outbreak is contained. It hopes to revive the sluggish economy by quickly responding with a two-stage framework, according to several government sources.
After the fiscal 2020 budget proposal, currently under deliberations, is passed by the Diet, Prime Minister Shinzo Abe will officially issue a directive to give shape to envisaged additional economic measures and compile them as early as April.
To date the government has twice issued emergency measures to combat the situation caused by the COVID-19 outbreak.
The government has implemented financial measures worth about 1.6 trillion yen, including the establishment of a credit line without interest, which is mainly for small and midsize firms. However, as many small and midsize companies still face financial difficulties, the government has decided to expand support through additional economic measures.
As for those struggling to get by, the government will implement measures for individual business owners and freelancers whose incomes have been drastically reduced by the outbreak.
"It is feared that some people may find it difficult to even pay their utility bills," Abe said at a House of Councillors Budget Committee meeting on Monday, expressing his intention to compile assistance measures as early as this week.
Regarding ex post measures to be put in place after the outbreak is contained, the government hopes to include tax reduction to encourage companies to invest in plant and equipment.
In addition, the government is considering direct benefits for low-income earners and families raising small children, as well as measures to stimulate demand in the tourism industry.
"We will implement measures that are not bound by conventional ideas to realize a V-shaped recovery," Abe said at the upper house Budget Committee.
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