Japan Eyes ¥2 Trillion FY 2017 Extra Budget (News)
Tokyo, Nov. 22 (Jiji Press)—The Japanese government has decided to draw up a fiscal 2017 supplementary budget for additional spending of some ¥2 trillion, including for setting up nursery facilities to accept 320,000 children on waiting lists ahead of schedule as pledged by the ruling coalition in the October 22 general election.
To compile the extra budget for the year ending next March, the government aims to tap into about ¥200 billion in fiscal 2016 budget surplus and some one trillion yen in funds for debt-servicing that were not used as a result of the Bank of Japan's introduction of a negative interest rate in February last year, informed sources said.
But because there will still be a revenue shortfall, the government plans to issue new construction bonds worth hundreds of billions of yen, the sources said, adding no deficit-covering bonds will be newly placed.
The planned supplementary budget will also fund disaster prevention and postdisaster reconstruction projects and measures to assist the domestic primary industry following a broad free trade accord reached between Japan and the European Union earlier this year.
The support measures, estimated to cost around ¥300 billion, will be partly for streamlining wood product-processing facilities and reinforcing the management base for cattle and dairy farmers who are likely to face tough competition with cheese and other products from the EU, the sources said.[Copyright The Jiji Press, Ltd.]