Dec 21 (Japan Times) - Japan’s parliament on Monday enacted a record Y36 trillion ($320 billion) supplementary budget for fiscal 2021, partially financing the government’s latest economic package to get the coronavirus pandemic-hit economy back on a solid recovery path.
Lavish spending plans under the first extra budget for the current fiscal year through March highlight Prime Minister Fumio Kishida’s stance of prioritizing economic revitalization — while putting on the back burner, for the time being, restoration of the nation’s fiscal health, which is the worst among advanced economies.
The government will be forced to issue new bonds worth Y22.1 trillion to cover most of the supplementary budget, with the outstanding balance of government bonds, which need to be cleared by tax revenue, expected to top Y1 quadrillion by March.
The draft extra budget passed the House of Representatives on Wednesday after being approved by Kishida’s Cabinet late last month.
The budget allocates Y31.6 trillion for the government’s new stimulus plan, which was revealed in mid-November, with fiscal spending totaling a record Y55.7 trillion.
With the policy package, Kishida, who took office in early October, will also prepare for another wave of COVID-19 infections that could occur this winter amid fears over the spread of the omicron virus variant.
