Mar 28 (Japan Times) - The Diet on Wednesday enacted a record ¥101.46 trillion ($920 billion) budget for fiscal 2019 that will boost spending on social security and defense and include stimulus measures to buoy the economy after a planned consumption tax hike.
The budget cleared the chamber in the afternoon following approval by the Upper House, which is controlled by the ruling coalition of the Liberal Democratic Party and Komeito.
While the government routinely draws up supplementary budgets later in the fiscal year to cover any additional spending, this is the first time the general account budget has topped ¥100 trillion from the start.
Key to the budget for the year starting April 1 is a ¥2.03 trillion stimulus package that Prime Minister Shinzo Abe hopes will underpin domestic demand after the consumption tax is increased to 10 percent from the current 8 percent in October.
The package includes a rebate program for purchases made by credit cards and other cashless means, shopping vouchers for households with low incomes or small children, and public works spending to shore up infrastructure against natural disasters.
As in past years, the largest chunk of the budget, a record ¥34.06 trillion, has been set aside for social security outlays including on health care and pensions, with such costs swelling amid a rapidly aging population.
Defense spending accounted for a record ¥5.26 trillion, due in part to purchases of the Aegis Ashore missile defense system and six F-35A stealth fighters.
Source: ANNnewsCH
