Japan Considers 28.5 Trillion Won Supplementary Budget This Year... Also Including LPG Subsidy Support

5105 trillion won) due to the impact of the Middle East. 5 trillion yen will be allocated for "special purpose reserves," restricted to domestic responses to the turmoil in the Middle East, and general reserves will also be increased by about 500 billion yen.
Prime Minister Sanae Takaichi is scheduled to explain the composition of this supplementary budget on the 25th. A Japanese government official told Nikkei, "(The scale of the supplementary budget) is being finalized at around 3 trillion yen.
35 billion won) as "priority support local grants. " This is intended to subsidize liquefied petroleum gas (LPG) rates, which have a high usage rate in local areas. Local governments can decide how to use these grants at their discretion.
7517 trillion won) from this year's reserve fund to support electricity and city gas bills for July through September. Household support in areas not supplied with city gas will be supplemented by these grants.
5 trillion yen, is contingent on the extension of gasoline price subsidies. There are concerns that the fund serving as the source for these subsidies could be exhausted by next month.
The supplementary budget is expected to be financed through the issuance of deficit bonds. Nikkei added that due to increased tax revenue, some of the deficit bond issuance planned for last year is expected to become unnecessary, and the government believes it can minimize the impact on financial markets.

sjmary@fnnews.com Seo Hye-jin Reporter