Key facts
- Japan's government is considering an extra budget for disaster relief.
- The budget is expected to be small and not aimed at economic stimulus.
- Work on the budget will begin in November.
- The government aims to pass the budget in the next ordinary parliament session.
- The Yomiuri newspaper cited unidentified sources for its report.
- Prime Minister Sanae Takaichi's administration is considering the budget.
Japan's government is contemplating the creation of an additional budget specifically for disaster relief, according to a report by the Yomiuri newspaper. This potential budget, the second for the current fiscal year, is anticipated to be modest in size and not intended as an economic stimulus measure, the newspaper stated, citing anonymous sources.
The government is reportedly planning to commence work on this extra budget in November. The objective is to secure its passage during the regular parliamentary session scheduled to begin early next year.
The Yomiuri report comes amid ongoing discussions about financing recovery efforts in Kumamoto Prefecture, which was significantly damaged by a recent earthquake. While some officials within the government and the ruling Liberal Democratic Party (LDP) support utilizing the 1 trillion yen already set aside in general reserves for unforeseen circumstances, others argue for a dedicated reconstruction package to better convey support to affected communities.
Prime Minister Sanae Takaichi has previously emphasized prioritizing the regular budget and reducing reliance on supplementary packages. However, the need for additional spending, particularly with an unconfirmed funding source for a planned consumption tax cut on food, raises concerns among analysts about fiscal discipline and market confidence.