Quake-hit Japan Mulls Diverting Some Foreign Aid Money to Domestic Rehabilitation

A view of the devastation following the March 11 earthquake and tsunami that hit Japan. The Japanese government is considering shifting some of its aid funds this year to support quake rehabilitation efforts. Photo by: Douglas Sprott

After last month’s devastating tsunami and earthquake, Japan is mulling over slashing its foreign aid for this fiscal year by 20 percent to support domestic relief and rehabilitation efforts.

In January, Japan announced some 572.7 billion Japanese yen (USD6.7 billion) in foreign aid in fiscal 2011, which is 7.4 percent lower than the 2010 levels.

>> Japan Cuts Foreign Aid Budget for 2011

An initial supplemental budget of more than $35 billion is needed to help rebuild roads, ports and schools, and create jobs for communities affected by the disasters, Japanese newspaper Asahi reported on Wednesday (April 6), according to Reuters.

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About the author

  • Ma. Rizza Leonzon

    As a former staff writer, Rizza focused mainly on business coverage, including key donors such as the Asian Development Bank and AusAID.