Japan to Review COVID-19 Subsidies for Biz Reconstruction
Tokyo, Nov. 1 (Jiji Press)--Japan will review a subsidy program for small and midsize companies hurt by the coronavirus crisis that are trying to rebuild themselves through business conversion, officials said Monday.
The program may lead to excessive dependence on subsidies and overinvestment, Finance Ministry officials told a meeting of the fiscal spending reform subgroup of the Fiscal System Council, which advises the finance minister.
The industry ministry program provides a maximum 100 million yen in subsidies per recipient to cover up to 75 pct of the costs needed for coronavirus-hit companies to reconstruct their operations drastically, including by
winding up existing operations and entering new types of business.
For the program, 1,148.5 billion yen was earmarked under the government's third supplementary budget for fiscal 2020. The government has selected recipients for nearly half of the funds budgeted for the program.
[Copyright The Jiji Press, Ltd.]