Japan’s Ministry of Finance has announced a JPY 13.9 trillion (USD 92 billion) additional budget to support Prime Minister Shigeru Ishiba’s stimulus package.
According to NHK (state broadcaster), the budget will be partially funded by JPY 3.8 trillion in higher-than-expected tax receipts and unused funds from the previous year, reducing the need for additional bond issuance to around JPY 6.6 trillion.
The new budget, slightly larger than last year’s, will include JPY 5.75 trillion for economic growth initiatives, JPY 3.39 trillion to address inflation, and JPY 4.79 trillion for security and social policies.
It also allocates JPY 490.8 billion for cash handouts to low-income households and JPY 1.03 trillion for gasoline subsidies, with JPY 319.4 billion aimed at reducing electricity and gas costs.
The government estimates the overall package, including private sector spending, will reach around JPY 39 trillion, potentially boosting the economy by 1.2% annually over the next three years.
Ishiba aims to pass the budget through parliament by the end of the year, requiring support from at least one opposition party due to his minority ruling coalition.
