Japan approves supplemental budget of $118 billion.

VTV.vn - The Japanese Parliament has officially approved a supplementary budget draft worth 18.3 trillion yen (118 billion USD).

Japanese yen. (Photo: Yonhap/VNA)

This is seen as a crucial legal step to provide financial resources for Prime Minister Sanae Takaichi's massive economic stimulus package, focused on curbing inflation, promoting high technology, and strengthening national defense capabilities.

The passage of this budget is a significant political victory for Ms. Takaichi. Although the ruling coalition does not hold a majority in the Upper House, the government successfully lobbied for support from opposition parties to implement these fiscal measures.

The additional budget will be disbursed as part of the overall stimulus package of 21.3 trillion yen announced last month. Key spending pillars include: energy subsidies to support households, direct cash subsidies, and strategic investment incentives in key sectors such as semiconductors and artificial intelligence (AI). In addition, the defense budget is also being expanded amid rising regional geopolitical tensions.

Prime Minister Takaichi affirmed his commitment to strategic fiscal spending to protect people's livelihoods and build a strong economy. However, financial analysts are expressing deep concern about the fiscal health of the world's fourth-largest economy. Notably, over 60% of the funding for this supplementary budget will be raised through the issuance of new government bonds. This move has raised concerns about the sustainability of Japan's public debt.

According to data from the International Monetary Fund (IMF), Japan currently has the highest public debt-to-GDP ratio among developed economies, projected to reach a record high of 232.7% of GDP this year.

Source: https://vtv.vn/nhat-ban-thong-qua-ngan-sach-bo-sung-118-ty-usd-100251217063327119.htm