Japan Seeks to Fund ¥3 Trillion Extra Budget Without Heavy New Debt

2 articles · Updated · Reuters · May 22

Satsuki Katayama said Japan would avoid relying heavily on new deficit-covering bond issuance if it compiles a supplementary budget, signaling market concerns will shape how the package is financed.
About ¥3 trillion, or $18.9 billion, is the scale being discussed for the current fiscal year's extra budget, though Katayama said Prime Minister Sanae Takaichi will give fuller details on Monday.
Takaichi ordered her cabinet this week to consider the package after the Iran war drove up costs, with the aim of cushioning the economic hit and easing pain from rising inflation.
Katayama said minimizing risk includes maintaining good dialogue with financial markets, underscoring Tokyo's effort to balance emergency support with fiscal discipline.

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