Japan considers another extra budget for disaster relief

The Japanese government is planning to draft an additional budget to fund disaster relief efforts following earthquakes and heavy rain, according to a report by the Yomiuri newspaper. This is the second such extra budget this fiscal year and is expected to be modest in size, according to unnamed sources. The government aims to commence work on the extra budget in November, with the intention of presenting it during the first parliamentary session of the upcoming year, the newspaper added.

Prime Minister Sanae Takaichi's office has not yet commented on the matter. Takaichi has previously expressed her intention to end Japan's tradition of creating large extra budgets and consolidate essential spending within the regular annual budget. However, the administration is considering the possibility of a smaller second extra budget specifically earmarked for disaster relief purposes, such as rebuilding efforts in regions affected by earthquakes and heavy rainfall.

This decision comes after an extra budget of approximately ¥3 trillion (US$19 billion) was allocated in June to subsidize gasoline prices and alleviate the financial burden on households due to escalating living costs, which are influenced by the geopolitical tensions in the Middle East.