Japan will allocate $19 billion to address energy instability.

VTV.vn - Japanese Prime Minister Sanae Takaichi announced on May 25 that the government will develop a supplementary budget package for fiscal year 2026 worth more than 3 trillion yen (approximately 19 billion USD).

Japan allocates over 3 trillion yen in supplementary budget to respond to energy crisis.

Japanese Prime Minister Sanae Takaichi has just announced a plan to create an additional budget package worth more than 3 trillion Yen, equivalent to nearly 19 billion USD, to help people cope with fluctuating energy prices due to disruptions in global supply.

Funds from the budget package will supplement contingency funds, with the government immediately allocating 500 billion yen to subsidize electricity and gas for households during the peak summer months of July to September. Regarding the financing plan, Ms. Takaichi stated that the budget will be raised through the issuance of additional government bonds. However, she affirmed that the total debt level will not increase compared to the initial plan. This is because, thanks to strong tax revenue growth, the government has been able to reduce the amount of bond issuance equivalent to what was initially planned for 2025. This explanation aims to reassure the market, amidst concerns about inflation and public debt, where Japanese bond yields are at their highest level in 30 years.

Although Japan is heavily reliant on oil supplies from the Middle East via the Strait of Hormuz, Prime Minister Takaichi said that efforts to diversify suppliers have helped import levels reach approximately 80% of the same period last year, enough to ensure supply until spring 2027.

Notably, Ms. Takaichi affirmed that she would not ask people to restrict energy use to avoid hindering economic activity. At the same time, the Japanese government is also considering adjusting gasoline subsidies to maintain retail prices at around 170 Yen/liter, aiming to balance supporting the public while reducing national financial pressure.

Source: https://vtv.vn/nhat-ban-se-danh-19-ty-usd-ung-pho-bien-dong-nang-luong-100260526095649187.htm