Japan considers another extra budget for disaster relief

Japan is contemplating the creation of an additional budget specifically for disaster relief and reconstruction following calamities like earthquakes and heavy rainfall, according to the Yomiuri newspaper. The Yomiuri newspaper reported that this would be the second extra budget this fiscal year, and it is anticipated to be modest in size.

The newspaper quoted unidentified sources indicating that the primary objective of the extra budget is not to stimulate the economy. The government plans to commence the work on the extra budget in November, with the aim of presenting it during the regular parliamentary session set to begin early in the coming year. Prime Minister Sanae Takaichi's office declined to comment on the matter.

Takaichi has expressed her intention to end Japan's longstanding tradition of creating large extra budgets and to consolidate essential spending within the annual budget. Nonetheless, the administration is contemplating the compile a smaller, second extra budget primarily for disaster relief, such as reconstruction efforts in regions affected by earthquakes and heavy rain.

This decision follows the approval of an extra budget of approximately ¥3 trillion (US$19 billion) in June, which was allocated for gasoline subsidies to alleviate the financial strain on households due to the rising cost of living, a consequence of the conflict in the Middle East.