Tokyo, Nov 26th : Japan’s cabinet will approve a record 36 trillionyen ($314billion) supplementary budget for fiscal 2020 on Friday to finance the government’s latest economic stimulus. According to Xinhua news agency, Japan’s fiscal health might be affected by the first additional budget for the current fiscal years starting in April.This is due to new national bond issuances worth 22.1 trillion yen.
Japan’s fiscal 2021 total new debt will exceed 65 trillion Japanese yen.This is less than the fiscal 2021 amount when the government had to create three additional budgets totalling around 73 trillion yen in order to combat the Covid-19 pandemic.
The Japanese government plans to also use 6.1 trillion Japanese yen, which was a carryover from the fiscal 2020 budget.
Prime Minister Fumio Kishida stated that his administration hopes to pass the supplementary budget at an extraordinary parliamentary session next month.
18.6 trillion yen will go towards measures to combat the virus and reduce the economic impact of the pandemic.This budget includes 1.7 trillion yen for increasing funds for the government’s unemployment Insurance system, as well as growing payments for furloughed workers.
To promote domestic tourism, a 268.5 billion yen government subsidy will be used.Due to the resurgence in Covid-19 infections, the program was suspended nationwide last Dec.
The cabinet approved the government’s new economic package worth approximately 78.9 trillion won, including private funds, a week ago.
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