Japan's Cabinet Set to Approve a Staggering 13.9 Trillion Yen Supplementary Budget

According to informed sources, Japan will rely significantly on additional tax revenues to finance Prime Minister Shigeru Ishiba's stimulus package with an extra budget totaling 13.9 trillion Yen. This additional budget is expected to be partially funded by higher-than-expected tax revenues amounting to 3.83 trillion Yen and unused funds from the previous year, which will limit the need for additional bond issuance to 6.69 trillion Yen. The budget, which is slightly larger than last year, may raise questions about the necessity of such extensive spending in light of the relatively solid economic growth in recent times.

The new supplementary budget will allocate 5.75 trillion Yen to grow Japan's economy, including its regions, 3.39 trillion Yen to combat inflation, and 4.79 trillion Yen for security and social policies. According to Kyodo News, 490.8 billion Yen will be spent on cash assistance for low-income households, and 1.03 trillion Yen will be allocated for the continuation of subsidies for gasoline prices. Additionally, 319.4 billion Yen will be used to reduce electricity and gas costs.