Tokyo, November 08 (QNA) – Japan’s Cabinet approved Tuesday an extra budget for the current fiscal year to spend 29.09 trillion yen ($199 billion) on an economic package designed to mitigate the pain on households and businesses of rising prices, exacerbated by a weaker yen.
To secure the necessary funding, the government will issue bonds worth 22.85 trillion yen, putting fiscal restoration on the backburner further despite its debt already more than twice the size of its economy, according to Japan’s (Kyodo) news agency.
The government is expected to submit the extra budget plan to parliament in mid-November to have it approved before the current session ends in early December.
The total size of the economic package will be 71.6 trillion yen, which includes 39.0 trillion yen in fiscal spending by the government and local municipalities.
The Bank of Japan owns over 40 % of outstanding government debt as part of its monetary easing. The central bank has kept short-term and long-term interest rates at rock-bottom levels and is in no hurry to change its stance, even as other major central banks have been raising interest rates to tame inflation. (QNA)
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