Japan enacts additional budget to fund economic recovery package

To cover most of the supplementary budget, the government will have to issue new bonds worth 22.1 trillion yen by March 2021.
By: | December 22, 2021
Topics: Compensation and Benefits | Health and Wellness | Japan | News

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).