The LDP and its chief Shinzo Abe will likely oust Noda's DPJ, ending a three year reign for the Democrats and Abe will almost certainly succeed Noda as Japan's Prime Minister following the December election, political pundits attest.
Noda is eyeing a third extra stimulus package for the current fiscal year through March, to be funded by an extra budget, but the successful passage of this policy will be determined by the results of the upcoming general election.
The cabinet said it has earmarked 132 billion yen to build new nursing homes and better-equip existing ones, in response to Japan 's rapidly aging society, and around 110 billion yen will be used to stimulate the job market. In addition 95 billion yen will be used to prop up small and medium-sized enterprises, the cabinet said.
Officials said Friday the government will not issue any new debt to help finance the package as Japan's public debt is already double the size of its economy and the largest in the industrialized world.
But economists are questioning the efficacy of the new package against a backdrop of an increasingly harsh employment environment, slumping exports, waning domestic demand and a perpetually strong yen.
Consumer demand, which accounts for around 60 percent of Japan' s total GDP, has been largely stagnant since last March's earthquake, tsunami and nuclear disasters, with retail sales retreating 1.2 percent in October from a year earlier, according to statistics released yesterday.
Compounding Japan's current export predicament is a territorial row with China, intensified by Japan's illegal nationalization of the Daiyou Islands in the East China Sea.
The row has soured ties between Tokyo and Beijing and has caused exports to China, Japan's largest trading partner, to slump as some Chinese consumers have boycotted Japanese goods and services.
Nutritious lunch provided in Taipei's elementary school
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