Takaichi Plans Extra Budget, Seeks to Curb JGB Issuance This Fiscal Year
Updated
Updated · Bloomberg · May 20
Takaichi Plans Extra Budget, Seeks to Curb JGB Issuance This Fiscal Year
10 articles · Updated · Bloomberg · May 20
Sanae Takaichi said Japan will move quickly to compile an extra budget but may avoid issuing a large amount of government bonds to fund it.
A surplus could emerge in government accounts by next month or the month after, she said in a televised party debate, making heavy bond issuance unnecessary.
The plan still allows for bond issuance within this fiscal year, but Takaichi said it remains uncertain whether those bonds would actually be sold.
The supplementary budget push marks a shift from her earlier reluctance and follows calls for support as Middle East conflict drives up commodity prices and pressures Japan's bond market.
With businesses opposing her tax cut plan, how will Japan's PM fight soaring energy costs?
As Japan plans massive new spending, can its central bank prevent a government bond market crisis?
Why did Japan’s leader abruptly reverse course on an emergency budget after just two weeks?