TOKYO, Nov. 30 (Xinhua) -- The Japanese government on Friday approved a 13.9 trillion yen (about 92.6 billion U.S. dollars) supplementary budget for the fiscal year through March to fund a new economic package aimed at easing the financial burden on households amid rising prices.
But Prime Minister Shigeru Ishiba's Liberal Democratic Party and its coalition partner lost their majority in the Oct. 27 general election, raising uncertainty over whether the budget will pass smoothly during a 24-day extraordinary Diet session from Thursday, Kyodo News said.
The Ishiba administration intends to fund about half of the extra budget, or 6.7 trillion yen, through new government bond issuance, fueling fears that Japan's fiscal health, already the worst among major advanced economies, could deteriorate further, the report said.
According to the plan, 3.4 trillion yen is expected to be earmarked for inflation relief, a key pillar of the supplementary budget, while 4.8 trillion yen is designated for measures such as improving the safety of natural disaster-prone Japan.
The government also plans to spend 5.8 trillion yen to push up disposable income across all generations, revitalize regional economies, as well as support artificial intelligence, semiconductor and other emerging industries.
Last Friday, the Ishiba administration formalized a comprehensive stimulus package worth 39 trillion yen featuring subsidies to curb rising energy costs and cash handouts to low-income households, as it seeks to shore up consumer spending amid rising prices.■