Japan Unleashes 95 Pct of FY 2020 Pandemic Fight Reserves

Politics Lifestyle

Tokyo, March 23 (Jiji Press)--The Japanese government, as of Tuesday, has decided to activate some 9.14 trillion yen, or 95 pct, of its fiscal 2020 budget reserves for fighting the COVID-19 pandemic.

The government raised as much as 11.5 trillion yen in the reserves when it drew up its first and second supplementary budgets for the year ending this month.

The reserves were reduced to 9.65 trillion yen through the compilation of the third extra budget, but still dwarfed the 1-trillion-yen reserves for coping with the 2008 financial crisis.

The Finance Ministry "chose to raise more than enough reserves for peace of mind" while initially planning to return unused funds to the national coffers, a senior ministry official said.

As the pandemic is prolonged, however, the government is seen ending up using most of the fiscal 2020 reserves.

[Copyright The Jiji Press, Ltd.]

Jiji Press