Japan Mulls 4.4-T.-Yen Special Quota in FY 2022 Budget
Tokyo, July 7 (Jiji Press)--The Japanese government on Wednesday released budget request guidelines for fiscal 2022, including a plan to set up a special spending quota of at least 4.4 trillion yen for growth fields such as carbon reductions.
Government agencies will be given until the end of August to file budget requests for the year that begins next April. The total amount of requests is expected to surpass 100 trillion yen for the eighth consecutive year.
The government estimates a natural increase of 660 billion yen in social security spending. Costs for medical and nursing services for the elderly are expected to swell as baby boomers begin to reach 75 in fiscal 2022.
For social security spending, government agencies will be allowed to demand up to the sum of the natural increase plus the 33.7 trillion yen earmarked under the fiscal 2021 budget.
The government faces the challenge of curbing the natural increase during the budget compilation process later this year at a time when the fiscal situation is deteriorating due to spending on COVID-19 relief measures.
[Copyright The Jiji Press, Ltd.]