Japan Eyeing 3-T.-Yen Extra Budget to Tackle Middle East Fallout

Tokyo, May 21 (Jiji Press)--Japan's government and ruling coalition plan to compile a fiscal 2026 supplementary budget worth around 3 trillion yen in preparation for a prolonged Middle East crisis, it was learned Thursday.

The extra budget will be submitted to the Diet, or parliament, in early June.

For envisaged subsidies for electricity and gas bills for this summer, about 500 billion yen will be sourced from existing reserve funds.

The government hopes to quickly ease households' burdens from rising energy prices.

Since funds for gasoline subsidies may run out by the end of June, securing additional financial resources by building up reserve funds has become an urgent task in case the de facto blockade of the Strait of Hormuz continues.

[Copyright The Jiji Press, Ltd.]