Japan Govt Eyeing Over 2.5 T. Yen for 2nd Extra Budget

December 10, 2018

Tokyo--The Japanese government is considering setting the size of a planned second supplementary budget for fiscal 2018 to next March at more than 2.5 trillion yen, it was learned Monday.

Under the second extra budget, the government plans to spend more than 1.1 trillion yen on measures to protect crucial infrastructure in disasters, informed sources said.

Some 300 billion yen will be earmarked for steps to help the domestic agriculture sector compete better against imported products after the Dec. 30 effectuation of the Trans-Pacific Partnership free trade agreement among Japan and other nations, the sources said.

The government aims to obtain cabinet approval late this month for drafts of the fiscal 2018 second extra budget and the fiscal 2019 main budget, according to the sources.

It plans to issue so-called construction bonds to finance public works projects under the extra budget, the sources said. Meanwhile, the government expects to secure more than one trillion yen in extra budget resources, as its fiscal 2018 tax revenue is seen topping the targeted level and its debt-servicing costs will likely be smaller than expected thanks to low interest rates in the country, the sources said.

After conducting emergency inspections of key infrastructure in the wake of a series of natural disasters this summer, the government compiled late last month a set of measures that need to be taken over the next three years, such as installing in-house power generation facilities at hospitals and strengthening river embankments. Among these measures, urgent projects will be covered by the fiscal 2018 second extra budget, the sources said.

The supplementary budget will also be used for supporting small companies and stepping up vaccination programs against rubella, which is now spreading especially in Tokyo and surrounding areas, the sources said.

In addition, the government plans to allocate funds for research and development activities related to so-called moonshot projects, which involve high risks but could produce big results if successful, according to the sources. Jiji Press