Country

Expansionist Fiscal Policies Implemented

USA

February 2008: The Economic Stimulus Act¹ (1 billion USD, 1.06 of GDP, $120 billion tax refund)

· 600 USD tax deduction for individual taxpayers, 1,200 USD tax deduction for married individuals, and 300 USD additional tax refund for each child.

· Tax refunds are not shown as income.

· Veterans and retirees were also given tax refunds on their income.

· Increased the adjusted basis of certain depreciable assets (e.g. equipment and computer software) that can be claimed as a deductible expense in 2008 to 50% (from 30%).

February 2009: American Recovery and Reinvestment Act²

· It is a package that includes $831 billion in tax cuts, tax payments, unemployment benefits for families, health, infrastructure and education expenditures.

· Approximately 290 billion dollars consists of tax reductions and incentives, and 280 billion dollars consists of public investment.

· Withholding tax reduction of up to $800 per family, tax reduction of $70 billion of the alternative minimum tax.

· Spending $120 billion on infrastructure projects.

· $87 billion in healthcare services and covering crisis-related healthcare costs.

· Salary support for teachers with an expenditure of nearly 100 billion dollars.

April 2009: Health Coverage Tax Credit³

· The share of health premium rates paid by the state was increased from 68% to 80%. Employees not previously included in this scope have also been added to the support category.

April 2009: Temporary Assistance to Needy Families

· Child care, job preparation, and study support were provided to needy families.

European Union

November 2008: European Economic Recovery Plan

· 200 billion euro—1.5% of GDP (Funds were transferred from the European Union, the European Investment Bank, and the countries’ budgets).

· It is aimed to increase consumer confidence and stimulate demand.

· Providing unemployment support, supporting household and child care.

· Making it more accessible for low-qualified people to find jobs through education and encouraging employment.

· Supporting structural reforms and innovations.

· Allocating 30 billion dollars to support SMEs.

· Providing credit guarantees to companies.

Germany⁴

2008: 5 billion euro scrapping program

· Cash support for those who want to replace their old vehicle with a new one.

January 2009: 50 billion euro incentive package

· Tax deductions, tax credit for children.

· Transportation and education expenses.

· Discount on social security premiums.

French⁵

February 2009: 26.5 billion euro (%1.3 of GDP)

· 10.5 billion euro in infrastructure, research and support to local authorities, tax reductions, and cash aid.

· 4 billion euro investment in the railway, energy, and postal companies.

· 4 billion euro for sustainable growth, education, defense.

· 2 billion euro support to the automotive industry.

China

December 2008, March 2009: 13% of the four trillion-yuan GDP (586 billion dollars) was provided from the 1.2 trillion-yen budget within the scope of the program targeting infrastructure, increasing social welfare, exports, and employment, and the remainder was supplied from local governments, entrepreneurs and banks

· 1.5 trillion-yuan railway, airline, road, and electricity systems.

· 1 trillion yuan for post-earthquake social support, housing acquisition.

· 210 million yuan in environment, energy, carbon emissions.

· 370 million yuan for technological innovation, infrastructure, agriculture.

· 150 million yuan for education, culture, family planning.

Japon

October 2008: 11.7 trillion yen ($107 billion)

· Transfer of 2 trillion yen of public funds to rescue banks.

· 2 trillion yen in support for households.

April 2009: 15.4 trillion-yen stimulus package includes tax cuts and public spending (2% of GDP is 153 billion dollars)

· 1.9 trillion-yen employment.

· 1.6 trillion yen in low-carbon technology.

· 370-billion-yen incentive for new car purchases.

December 2009: 1.5% of the 7.2 trillion-yen GDP was aimed at increasing demand for the purchase of machinery, electronic goods, and vehicles

South Korea

November 2008: 14 trillion won

· 11 trillion won public expenditures, 4.6 trillion won mainly in regional infrastructure, real estate, and construction sectors.

· Tax breaks for factory constructions, mainly 3 trillion won.

March 2009: 28.9 trillion won additional budget (3% of GDP)

· Employment and growth support.

April 2009: 2.5 million won

· Tax discount for those who want to replace their old vehicle.

Hungary

November 2008: 1.4 trillion forints ($7 billion)

· Tax deductions.

· 0.7 trillion-forint loan guarantee for SMEs and companies.

· Liquidity support for 0.3 trillion-forint loans.

England⁶

November 2008: 20 billion pounds (1% of GDP), 1 billion pounds tax reduction, 2 billion pounds loan guarantee

· Reducing VAT from 17.5% to 15%.

· Reducing income tax from low-income earners.

· Support for small businesses.

· Support for low-income earners and households.

Netherland⁷

November 2008: 6 billion euro (1% of GDP)

· 2.5 billion euro in tax breaks for investment, SMEs and employment.

· Program support to find jobs for the unemployed.

· Increasing public investments.

March 2009: 6 billion euro (1% of GDP)

· 1.5 billion euro for investment expenditures for states and municipalities.

· Supporting employment growth.

· Renewable energy, sustainability.

· Road, waterway, school, hospital construction, etc.

· Supporting the liquidity of companies.

Spain

April 2008: ?0 billion (1.8% of GDP)⁸

· Increase in lowest wages, financial support to households.

· Tax deductions, housing discounts.

November 2008: 11 billion euro (1% of GDP)

· 8 billion euro public expenditure.

· 800 million euro support to the automobile industry.

Australia

November 2008: $10 billion (1% of GDP)

· 4.8 billion dollars paid to retirees⁹.

· $3.9 billion per child in payments to low- and middle-income earners.

· $1.5 billion support for first-home buyers.

· 187 million dollars for education.

February 2009: $42 billion (4% of GDP)

· $12.7 billion in employee payments.

· 14.7 billion dollars for the construction of schools and educational areas.

· $6.6 billion to increase national public stock and housing support.

· 3.9 billion dollars of free insulation for homes.

· 2.7 billion dollars in tax breaks for businesses to purchase some equipment.

· 890 million dollars in road, railway and infrastructure investments.

Rusia

November 2008: $20 billion

· Reducing corporate tax from 24% to 20%.

· Expenditure for retirees, unemployed and companies.

· Capital transfer to public institutions and financial institutions.

April 2009: $15 billion (budget revision of 440 billion rubles, 5.9% of GDP)

· Tax reductions for the private sector.

· Transfer payments to households.

· Spending on defence, security, vehicles, health and education.

India

December 2008: $4 billion (20,000 crore)¹⁰

· Infrastructure expenditure.

· Reduction in indirect taxes.

· VAT reduction on export taxes, vehicles, cement and textiles.

· Support for export-oriented investments.

January 2009: $4.1 billion

· Credit and investment supports.

· Infrastructure and export supports.

Kazakhistan

2009-2010: 12 billion dollars budget (11% of GDP)¹¹

· Sources for four big banks.

· Steps to support construction projects and demands.

· Support for SMEs and the agricultural sector.

· Support for infrastructure and industry.

· 10% discount on corporate tax.

· 1% discount on VAT.

Kenya

February 2009: $232.6 million

· The government issued 12-year bonds for infrastructure investments.

Mairutus

January 2009: 14.2 billion rupees (3% of GDP)

· Package aimed at increasing growth, employment and purchasing power.

· Transferring public expenditures to investments.

November 2008: $340 million incentive package (4.5% of GDP)

· Increasing investment expenditures.

Nigeria

January 2009: 22.6 billion dollars, 52 billion dollars transferred from foreign currency reserves

· Capital expenditures.

· 5% VAT discount on products to stimulate some industries.

· 70 billion dollars in support to the textile industry.

· Foreign exchange control applications.

South Africa

February 2009: $92 billion (787 billion rand) infrastructure program

· 80 million dollars was allocated for public investments for three years.

· Public sector employment policy.

· Incentives and financing for companies in difficulty.

· Increase in social spending.

· $1.6 billion income tax reduction for middle and low-income earners.

Egypt

January 2009: 7 billion Egyptian pound package

· Support for the tourism sector, tax exemption for charter flights, free accommodation support in hotels.

· Establishment of deposit guarantee fund and support to banks.

· Support to banks and SMEs with financing provided from the World Bank.