TOKYO, Dec 21 (NNN-NHK) – Japan’s parliament yesterday approved a record 36.0 trillion yen (about 320 billion U.S. dollars) supplementary budget for fiscal 2021, in part, supporting the latest economic package to set the economy, hit by the COVID-19 pandemic, back on a recovery track.
The Japanese government will be forced to issue new bonds worth 22.1 trillion yen (196.4 billion dollars), to finance the majority of the supplementary budget.
As a result, the outstanding balance of government bonds, which need to be cleared by tax revenue, is expected to surpass 1,000 trillion yen (8.9 trillion dollars) by Mar.
The draft of the extra budget was approved by Japanese Prime Minister, Fumio Kishida’s Cabinet, late last month and passed the House of Representatives last Wednesday.
In the budget, fiscal spending totalled a record 55.7 trillion yen (495.1 billion dollars), with 31.6 trillion yen (280.9 billion dollars) for the government’s new stimulus plan.
As a precautionary measure for another possible wave of COVID-19 infections this winter, Kishida’s policy package largely leaned towards curbing COVID-19, amid fears over the spread of the Omicron virus variant.
Of the total extra budget, 18.6 trillion yen (165.3 billion dollars) was earmarked for measures to curb the spread of COVID-19 and support medical institutions.
In particular, 2.0 trillion yen (17.8 billion dollars) was set aside as subsidies to help medical institutions secure more beds for COVID-19 patients.
To support promotion of the government’s COVID-19 vaccination programme and procurement of treatment drugs, 1.3 trillion yen (11.6 billion dollars) and 601.9 billion yen (5.3 billion dollars) were allocated, respectively.
As a key policy measure in the stimulus package, 1.2 trillion yen (10.7 billion dollars) will be used for the government’s handout programme of cash and vouchers, for children aged 18 or younger, in households where the primary earner’s annual income is below 9.6 million yen (84,608 dollars).– NNN-NHK
