Quake reconstruction may cost upto $184 billion, says Japan’s economic minister

The reconstruction from the devastation earthquake that hit Japan in March may cost the country 10 trillion yen to 15 trillion yen ($184 billion), said Japan's economic minister Kaoru Yosano, Reuters reported.

Yosano said the government may have to issue bonds to cover the costs. But at the same time it should also think about ways to pay for redemption. He also mentioned about possibilities of some form of tax hike.

If we were to issue bonds for reconstruction, we need to decide in how many years we would pay the money back and how. That's important in maintaining market trust in Japan's fiscal state, Reuters quoted Yosano as saying.

The triple disaster of an earthquake, tsunami and prolonged nuclear crisis brought Japan back into recession. The country's economy shrank much more than expected in the first quarter. The reconstruction from the disaster is the biggest since the aftermath of World War Two, Reuters reported.

Earlier this month, the Japan government passed a 4-trillion-yen first extra budget to meet the immediate disaster relief costs. It also has planned a sizable second extra budget for the reconstruction effort.