Japan Mulls Extra Budget for Current Fiscal Year

Prime Minister Sanae Takaichi’s government is considering an extra budget for the current fiscal year that would be larger than last year’s, local media reported, Japan Times reported.

The larger spending underscores Takaichi’s approach of what she calls “responsible and expansionary finance.” (Photo: Kakidai Wikimedia Commons) 

The Finance Ministry plans an economic package worth approximately ¥17 trillion ($110 billion), according to the Nikkei, with a supplementary budget expected to reach around ¥14 trillion, exceeding last year’s ¥13.9 trillion under former Prime Minister Shigeru Ishiba.

Earlier, Kyodo News also reported that the extra budget will likely surpass the previous year’s.

The larger spending underscores Takaichi’s approach of what she calls “responsible and expansionary finance,” signaling her readiness to rely more heavily on fiscal policy to support growth.

Economists surveyed by Bloomberg anticipate roughly ¥15 trillion in new spending. The prospect of additional bond issuance has already nudged yields higher and added pressure on the yen.