Japan announces huge disaster fund

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Japan announces huge disaster fund

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The Japanese government has unveiled an emergency budget of four trillion Yen to combat the devastation wrought by March’s massive earthquake and tsunami.

Much of the money, equivalent to around 34 billion euros, appears set for disaster relief and infrastructure projects, notably temporary housing.

Although the budget is still subject to parliamentary approval this month, Prime Minister Naoto Kan indicated several further funds may be needed to finance the huge rebuild. It still remains unclear how much, if any, of this disaster relief budget will go towards stabilising the stricken Fukushima nuclear complex.

Tokyo has said no new government bonds will be issued to raise the money as the country seeks to contain its already huge public debt.

The March 11 disaster resulted in large swathes of north eastern Japan being completely destroyed.

Some 27,000 people are thought to have died, while tens of thousands of survivors still remain homeless.