Tokyo

The Japanese government plans to earmark 3.2 trillion yen in spending under a planned supplementary budget for fiscal 2019, which ends in March next year, Jiji Press learned on Thursday.

The government is expected to adopt the extra budget plan on Friday.

The extra budget will cover some 20 percent of the 13.2 trillion yen in fiscal spending included in the government’s 26-trillion-yen economic stimulus package adopted on Dec. 5.

Under the extra budget, the government plans to spend 2.3 trillion yen on measures to enhance disaster prevention capabilities, including dredging rivers and strengthening levees.

The government plans to use 900 billion yen on measures to mitigate the impact on small and midsize companies and farmers of the US-China trade war and the Japan-US trade agreement.

For steps to support the Japanese economy after the Tokyo Olympics and Paralympics next year, 1.1 trillion yen will be set aside under the extra budget.

The extra budget will also include a reduction in tax grants to local governments.

The government plans to issue deficit-covering bonds in the middle of a fiscal year for the first time in three years as its fiscal 2019 tax revenue is seen falling short of the targeted level.

Jiji Press