Japan calls for extra budget to parliament for economy impacted by COVID-19

Japan’s government on Monday submitted to parliament a draft extra budget for fiscal year 2021 worth a record 36 trillion yen ($320 billion) for partial financing of its latest economic package. As per Kyodo News, Japanese government’s move is aimed at helping economy recover from COVID-19 pandemic. With first supplementary budget for current fiscal year through March, Japanese Prime Minister Fumio Kishida’s ministration will also gear up for anor wave of COVID-19 pandemic that could be recorded in winters amid growing concerns over Omicron variant.

Reportedly, extra budget entails a fresh government bond issuance worth 22.1 trillion yen. This has furr triggered fears of anor deterioration in nation’s fiscal health which is remarkably worst among major developed countries. draft supplementary budget was approved by Cabinet late last month as Japan recorded significantly lower numbers of new Coronavirus infections due to government ramping up vaccination program. 

Japanese Finance Minister Shunichi Suzuki reportedly acknowledged that country’s economy “remains in a severe situation” and asked lawmakers for a quick enactment of budget. During an dress at a plenary session of House of Representatives, Suzuki reportedly said, “Taking this opportunity, we need to work for an early resumption of socio-economic activities while making every effort for risk management.”

He was furr quoted by Kyodo as saying, “To put economy on a self-sustaining growth track by realizing a virtuous cycle of economic growth and distribution (of wealth), this supplementary budget is required to be enacted as soon as possible.”

Budget expected to be approved by National Diet

budget is expected to be approved by National Diet, bicameral legislature of Japan, in a parliamentary session that was convened on Monday and will be continued through 21 December. Out of total, 31.6 trillion yen will be used for newly compiled stimulus plan that entails a record 55.7 trillion yen in fiscal spending. ditionally, policy package is worth around 78.9 trillion yen when private funds are included. Kyodo stated that among planned outlays, 18.6 trillion yen will be allocated for measures to prevent virus from spreing and cushioning economic impact of pandemic.

(IMAGE: AP)