TOKYO: The Japanese government adopted Wednesday a supplementary budget plan with record general-account expenditures of 31,911.4 billion yen, vowing to reduce the social and economic impacts of the coronavirus outbreak.

The second extra budget plan for fiscal 2020 is designed to finance coronavirus relief measures worth 117.1 trillion yen, including medical system development and support to businesses struggling to pay rent.

The move brought the total size of virus relief measures in the country, including those related to the first extra budget, enacted on April 30, to over 230 trillion yen.

"It's important to deliver support promptly to people in difficult situations," Prime Minister Shinzo Abe said in a meeting of government and ruling coalition officials.

The government and ruling bloc aim to pass the second extra budget during the current parliamentary session set to end on June 17.

The government plans to fully finance the second extra budget by issuing additional government bonds, including 22,612.4 billion yen in deficit-covering bonds.

The proportion of revenue from bond issuances in the government's overall fiscal 2020 revenue will rise to a record 56.3 pct, exceeding the 52.1 pct marked in fiscal 2009 in the wake of the global financial crisis.

Of the general-account spending planned under the second extra budget, 2,989.2 billion yen will go to the medical field, including 2,237 billion yen in subsidies to hospitals treating coronavirus patients, up from the 149 billion yen secured under the first extra budget.

The government will spend 205.5 billion yen to support the development of coronavirus vaccines and drugs.

Also planned is a 2,024.2-billion-yen program to provide businesses whose sales have plunged due to the pandemic with financial aid equivalent to two-thirds of their rent for six months.

A total of 11,639 billion yen will be utilized to provide loans to companies hit by the pandemic. The lending will include subordinated loans from government lenders.

The government will also boost measures to help workers maintain their daily lives, earmarking 451.9 billion yen.

Specifically, it will raise the daily limit of employment-adjustment subsidies provided to companies putting workers on paid leave to 15,000 yen per person from the current 8,330 yen.

The extra budget plan also calls for creating a system to allow workers to apply for leave allowances by themselves.

The government will also boost special grants to local governments by 2 trillion yen to 3 trillion yen.

A further 10 trillion yen will be added to reserve funds that can be used to finance coronavirus relief measures.

JIJI Press