Japan Govt Submits 18.3-T.-Yen Extra Budget to Diet

Tokyo, Dec. 8 (Jiji Press)--The Japanese government on Monday submitted to the Diet, the country's parliament, its fiscal 2025 draft supplementary budget with 18,303.4 billion yen in general-account spending mainly to finance the first comprehensive economic package under Prime Minister Sanae Takaichi's administration.

This is sharply larger than the 13,943.3-billion-yen extra budget for the previous fiscal year. The economic package will center on measures to ease the impact of rising prices, as well as investment in growth sectors.

The Budget Committee of the House of Representatives, the all-important lower chamber of the Diet, will meet on Tuesday and Wednesday for discussions on the budget proposal. The government aims for its passage during the current Diet session, which is set to end on Dec. 17.

Takaichi has made measures against high prices her top priority while pledging strategic fiscal outlays to build a stronger economy.

In the Lower House, the ruling coalition of the Liberal Democratic Party and the Japan Innovation Party (Nippon Ishin no Kai) holds a majority, enabling it to pass the budget bill on its own. The ruling camp, however, remains in the minority in the House of Councillors, the upper chamber, and the Takaichi administration hopes to secure opposition cooperation for swift passage of the draft budget.
   

The draft earmarks 8,904.1 billion yen for ensuring livelihood security and addressing high prices, including measures against rising food prices and support for wage hikes at small firms.
   

It allocates 6,433 billion yen for realizing a strong economy through crisis management investment and growth investment, and 1,656 billion yen for reinforcing diplomatic and defense capabilities.
   

Reserve funds will be increased by 709.8 billion yen to prepare for future contingencies, such as further price hikes and expanding bear-related damage.
   

To fund the package, the government will draw on an expected fiscal 2025 tax revenue windfall of 2,879 billion yen, as well as a surplus of 2,712.9 billion yen from the previous fiscal year.
   

The shortfall will be covered by issuing an additional 11,696 billion yen in government bonds, meaning that more than 60 pct of the budget will be financed by debt.

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