Japan enacts additional budget to fund economic recovery package

Japan enacted a record 36.0 trillion yen (US$320 billion) as part of its supplementary budget for fiscal 2021, aimed at partially financing the government’s latest COVID-19 recovery package to support the economy. 

To cover most of the supplementary budget, the government will have to issue new bonds worth 22.1 trillion yen (US$194 billion),  with the outstanding balance of government bonds — which need to be cleared by tax revenue — expected to top 1,000 trillion yen (US$8.8 trillion) by March, according to The Mainichi. 

With the package, the government is also preparing for another wave of COVID-19 infections that it expects could happen over winter amid fears of the ease of spread of the Omicron strain. 

Some 31.6 trillion yen (US$278 billion) has been allocated for the government’s new stimulus plan, with fiscal spending amounting to 55.7 trillion yen (US$490 billion).

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The government has also set aside 1.2 trillion yen (US$10.56 billion), in which it plans to dole out 100,000 yen (US$880) in cash and vouchers for children aged 18 or younger in households where the primary earner’s annual income is less than 9.6 million yen (US$84,478).