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What Japan's Next Stimulus May Look Like as Abe Runs on Fumes

  • Economists see rising chances of package to boost growth
  • Funding likely from last year's budget, rising tax revenue

Japan’s anemic economy is prompting calls for another fiscal boost. If history -- and the government’s strained finances -- are any guide, any package is likely to redirect cash already on the books.

With 1.6 trillion yen ($13 billion) leftover from last year and rising tax revenue bolstering the public coffers, the Ministry of Finance has leeway to fund stimulus without adding to the world’s heaviest debt load. As much as 3.5 trillion yen is needed to jump start growth, an adviser to Prime Minister Shinzo Abe said after data showed the world’s third-biggest economy contracted last quarter.