Japan FY 2021 Extra Budget to Feature Record 36-T.-Yen Spending

Politics

Tokyo, Nov. 25 (Jiji Press)--The Japanese government has drafted a fiscal 2021 supplementary budget featuring a record general-account spending of 35,989.5 billion yen, informed sources said Thursday.

The extra budget, in which the government will allocate 31,562.7 billion yen to a package of economic measures, will be adopted at a cabinet meeting Friday and presented to an extraordinary parliamentary session slated to start on Dec. 6.

The budget assumes a rise in fiscal 2021 tax revenue by 6,432 billion yen from the initial projection to an all-time high of 63,880 billion yen, up from the revenue of 60,821.6 billion yen in the previous fiscal year that ended in March, thanks to larger corporate tax income.

To finance the spending, the government will also issue 22,058 billion yen in new Japanese government bonds, including 19,231 billion yen in deficit-covering bonds and 2,827 billion yen in construction bonds, and use 6,147.9 billion yen in fiscal 2020 budget surplus.

The stimulus package is aimed at shoring up the economy suffering from the novel coronavirus pandemic. In the supplementary budget, 18,605.9 billion yen will be set aside for preventing COVID-19 from spreading, 1,768.7 billion yen for resuming socioeconomic activities and 8,253.2 billion yen for initiating a "new capitalism" program touted by Prime Minister Fumio Kishida.

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