Tokyo — A major Japanese parliamentary commission on Monday approved the government’s record $ 940 billion initial spending plan for next year and prepared for the budget to fully pass parliament in March.
Prime Minister Fumio Kishida relies on a budget to help the world’s third-largest economy escape from the COVID-19 stagnation from this quarter’s economic stagnation.
The budget for the new fiscal year starting in April is 107.6 trillion yen (US $ 936.14 billion), which is the largest initial expenditure plan in Japan.
The vast fiscal package will also increase the burden of the heaviest debt burden in industry, which is more than double the size of Japan’s $ 5 trillion economy.
The budget was approved by a ruling party member of the House of Representatives Budget Committee on Monday. It will be voted on Tuesday in the plenary, as agreed by the ruling and the opposition block.
Given that the ruling parties of both houses are the majority, the budget will be approved 30 days after being sent to the House of Councilors.
It marked the fastest enactment of the budget since 1999.
Fumio Kishida has decided to turn the primary budget, excluding the sale of new bonds and debt repayment costs, into the black by 2025, while the ruling Liberal Democratic Party is under pressure to increase spending before the upper house election in July. I swore.
The first annual budget compiled under Fumio Kishida’s cabinet followed this year’s additional 36 trillion yen spending as it vowed to implement seamless spending for 16 months to maintain the economy. ..
Increased spending, according to analysts, meant weaker fiscal discipline among policymakers who relied on the Bank of Japan’s ultra-loose monetary policy to keep borrowing costs low.
In the budget, emergency COVID-19 costs 5 trillion yen, defense costs 5.37 trillion yen, welfare costs 36.3 trillion yen, and debt repayment costs 24.3 trillion yen account for more than half of the annual expenditure.
($ 1 = 114.9400 yen)