Reuters
Governments have announced fiscal stimulus packages to help the world's economies withstand the effects of the financial crisis.
Below are some details:
* AUSTRALIA:
— The government has announced a A$10.4 billion ($6.8 billion) package of cash handouts and family benefits.
— It is providing A$1.5 billion to boost the housing and home building markets and doubling the grant for first-time home buyers. They will now get A$14,000 from an original A$7,000.
* CHINA:
— China approved a 4 trillion yuan ($586 billion) government spending package to bolster demand. The fiscal policy, which runs through 2010, will target investments in roads, railways and airports infrastructure.
— China also confirmed a change in value added tax (VAT), which will allow companies to deduct the cost of capital equipment, saving them about 120 billion yuan a year.
* GERMANY:
— The government has announced a package which will generate about 50 billion euros ($64.22 billion) in investment and contracts.
– A new lending programme of up to 15 billion euros will be introduced for German state-owned development bank Kreditanstalt fuer Wiederaufbau (KfW) to strengthen its lending activities. KfW's infrastructure programme for structurally weak local authorities will be raised by 3 billion euros.
— Urgent investment in transport will be accelerated via a new programme totalling 1 billion euros in both 2009 and 2010.
— The government will make available an additional 200 million euros in 2009 for states to boost regional economies.
* HUNGARY:
— Hungary announced plans for a 1,400 billion forint ($6.88 billion), two-year stimulus package to kick-start economic growth. The package does not involve new spending but a regrouping of existing funds to assist small and medium-sized businesses.
— 680 billion forints will be allocated to provide lending guarantees primarily to SMEs and 260 billion forints will provide liquidity for lending.
* SOUTH KOREA:
— The government unveiled an economic stimulus package worth 14 trillion won ($11 billion). It comprises 11 trillion won of public expenditure to support low income groups and local economies and 3 trillion won of tax reductions.
— Measures also include an extension of 1.3 trillion won to state-owned banks to help SMEs. The government is to expand credit guarantees to SMEs by 6 trillion won.
* SPAIN:
— In the last six months, Spain announced various measures to cushion the impact of the economic slowdown and soaring unemployment including a 38 billion euro ($49.28 billion) fiscal stimulus package.
— The package includes 6 billion euros in tax cuts and 4 billion euros of liquidity to credit strapped companies and households.
— It also includes a 400-euro income tax rebate for employees, pensioners and the self-employed.
* SWITZERLAND:
— The government announced an economic stimulus package worth 890 million Swiss francs ($753 million). It includes government spending of 340 million francs on flood defence, natural disasters and energy efficiency projects.
— Spending plans also include up to 1 billion francs on roads and railways and 550 million francs as tax breaks to 650 firms for job creation programmes.
* TAIWAN:
— Taiwan has announced T$122.6 billion worth of subsidies and tax cuts and T$58.3 billion of infrastructure spending. The steps unveiled are expected to generate T$1 trillion ($31.2 billion) in investment and consumption.
* UNITED STATES:
— President George W. Bush signed a $168 billion, two-year economic stimulus package into law in early 2008. Of that total, $152 billion was earmarked for 2008.
— The package includes tax rebates of up to $600 per individual earning $75,000 in adjusted gross income or less and $1,200 per couple plus $300 per child. Businesses would be able to deduct half the costs of purchases of new equipment.
