Japan submits record supplementary budget to parliament for economy affected by COVID – .

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Japan submits record supplementary budget to parliament for economy affected by COVID – .


The Japanese government on Monday submitted to parliament a draft supplementary budget for fiscal year 2021 worth a record 36 trillion yen ($ 320 billion) to partially finance its latest economic package, aimed at helping the economy to recover from the coronavirus pandemic.

With the first supplementary budget for the current fiscal year through March, the administration of Prime Minister Fumio Kishida will also prepare for another wave of COVID-19 infections that could arise during the winter, against a backdrop of growing concern over the emergence of the Omicron coronavirus variant.

The supplementary budget involves a new issuance of government bonds worth 22.1 trillion yen, fueling fears of a further deterioration in Japan’s fiscal health, already the worst among major developed countries.

The opening ceremony of an extraordinary parliamentary session takes place in Tokyo on December 6, 2021, in the presence of Japanese Emperor Naruhito (top). (Kyodo) == Kyodo

Approved by Cabinet at the end of last month, the draft supplementary budget was drawn up as Japan saw a remarkably lower number of new cases of the virus thanks to progress in the government’s vaccination program, various restrictions on economic activities. national rules being gradually lifted.

Acknowledging that the Japanese economy “remains in dire straits,” Finance Minister Shunichi Suzuki called on lawmakers to pass the budget quickly.

“Seizing this opportunity, we must work for a rapid resumption of socio-economic activities while making every effort for risk management,” Suzuki said in a speech to a plenary session of the House of Representatives.

“To put the economy on a path of self-sustaining growth by achieving a virtuous circle of economic growth and distribution (of wealth), this supplementary budget must be enacted as soon as possible,” he said.

The budget is expected to be approved by the Diet in an extraordinary parliamentary session held on Monday and will run until December 21.

Of the total, 31.6 trillion yen will be used for the new stimulus package, which involves a record 55.7 trillion yen in budget spending. The policy package is worth around 78.9 trillion yen when private funds are included.

Of the planned spending, 18.6 trillion yen will be allocated to measures to prevent the spread of the virus and to mitigate the economic fallout from the pandemic, such as helping medical facilities with 2,000 billion yen to secure more people. beds for COVID-19 patients.

To further promote the government’s rollout of the COVID-19 vaccine, 1.3 trillion yen is set aside, of which 601.9 billion yen is set aside for the purchase of treatment drugs.

Key measures of the stimulus package include 100,000 yen distributed in cash and vouchers to children aged 18 and under in households where the annual income of the primary support is less than 9.6 million yen. As part of the supplementary budget, 1,200 billion yen will be allocated to the project.

Some 268.5 billion yen will be used to restart the government’s “Go To Travel” subsidy program, which is designed to support the domestic tourism sector hit by the pandemic. It was suspended nationwide in December last year following a spike in new cases of the virus.

As compensation payments to workers on leave have increased, the government will use 1.7 trillion yen to boost funds in its unemployment insurance system. It will also allocate 1.4 trillion yen for a separate 100,000 yen cash distribution program to be provided to low-income households.

In addition to the supplementary budget, the stimulus will be funded from the initial budget for fiscal year 2022, which will be drafted later this month, as well as from reserve funds for fiscal year 2021 to deal with the pandemic, that the government can use without the approval of the Diet.


Associated coverage:

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The Japanese government approves the stimulus with a record 55.7 tril. yen in spending


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