Japan Govt Eyes 2nd Extra Budget for FY 2026

Tokyo, Oct. 7 (Jiji Press)--The Japanese government is considering compiling a second supplementary budget for fiscal 2026 to cover about 300 billion yen in additional personnel costs and prepare for an increase in spending on recovery efforts following recent major natural disasters, government sources said Wednesday.

The government plans to submit a second supplementary budget bill during an ordinary Diet session to be convened in January 2027.

Under the fiscal 2026 initial budget, about 700 billion yen currently remains in general reserve funds, which can be used for disaster response. "If the reserve funds are insufficient, additional expenses will be financed by a supplementary budget," a senior government official said.

Prime Minister Sanae Takaichi advocates reducing the government's reliance on extra budgets. Still, an aide to the prime minister said that compiling an extra budget to reflect the National Personnel Authority's annual recommendations does "not contradict the administration's policy" unless it includes funds for economic measures.

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