TOKYO (Reuters) – Japan’s parliament on Monday approved the first supplementary budget of fiscal 2021, with a record spending of $ 317 billion, to help the economy withstand the fallout from COVID-19, weighing even more on the heaviest debt in the industrial world.
The 36 trillion yen ($ 317 billion) budget allocates funds to fight COVID-19, including securing vaccines and medicines, while also providing cash payments for families with children and children. funds for the promotion of tourism.
This is the biggest supplementary budget ever implemented by the government. The Japanese government released three supplementary budgets in the past fiscal year.
The supplementary budget will be partly financed by some 22 trillion yen of additional government bonds to be issued during the current fiscal year.
Prime Minister Fumio Kishida has said his first supplementary budget is aimed at restoring the COVID-hit economy and achieving a virtuous cycle of growth and wealth distribution, while regulating the country’s public finances in the long term.
The budget also aims to promote tourism, secure financing for businesses, stimulate the growth of green and digital transformation, and strengthen semiconductor factories and supply chains.
The supplementary budget will also be a source of funding for the record 79 trillion yen economic package unveiled by the government last month. The government says the package, which includes record spending of 55.7 trillion yen, will increase gross domestic product by around 5.6% – an estimate that private sector economists find overly optimistic.
The supplementary budget will be followed by an annual budget for the next fiscal year, which will be compiled later this week, guaranteeing 16 months of spending.
(Reporting by Tetsushi Kajimoto; Editing by Ana Nicolaci da Costa)
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