Japanese Prime Minister Fumio Kishida’s cabinet on Tuesday approved a second extra-budgetary spending of 29.1 trillion yen ($198.54 billion) for an economic stimulus package this fiscal year, big part of which will be financed by additional new debt.
The latest stimulus spending has highlighted the struggle the Kishida government faces to achieve economic growth alongside fiscal reform, leaving Japan as an exception in a global trend to reduce stimulus policy in crisis mode.
“There is no doubt that our response is making the fiscal situation more severe. Coming out of the exceptional coronavirus response into a shift towards normalization, we must conduct responsible economic and fiscal management,” Finance Minister Shunichi Suzuki told reporters after the extra budget was approved.
The Finance Ministry said an additional 22.8 trillion yen of new debt will be issued to help cover the latest supplementary budget, resulting in a total planned new borrowing of 62.5 trillion yen this fiscal year.
The extra budget included measures to help families cope with rising electricity, gas and gasoline costs. It also aims to help various regions take advantage of the weak yen to attract tourists.
Source: CNN Brasil
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