Japan’s lawmakers have approved a crucial bill that will ensure that the government does not run out of money at the end of this month.
It will allow the government to borrow additional money by selling bonds to pay for a large chunk of its expenses.
The approval comes amid fears that Japan’s economy may be heading towards a recession.
The opposition had previously stalled the bill, demanding that the government call for elections first.
On Wednesday, Prime Minister Yoshihiko Noda had said that he was ready to dissolve the parliament and hold snap elections.
He is expected to make a formal announcement on the issue later on Friday.
‘Signs of weakness’
In a separate move, Japan’s government warned that the economy is showing “signs of weakness”, adding to concerns about the health of the world’s third-largest economyIt said that industrial production is falling and exports continue to remain weak due to slowing global demand.
It added that private consumption and business investment also remain subdued.
Japan’s economy shrunk 0.9% in the July to September quarter, from the previous three months, and there are fears it may contract further in the current quarter.
“Concerning short-term prospects, weak movements would remain for the time being,” the Cabinet Office said in its monthly report.
This is the fourth successive month that Japan has lowered its assessment of the economy, the longest such streak since the 2008 – 2009 global financial crisis.
