Sanae Takaichi has presented a supplementary budget of $19 billion. She pledged that no additional borrowing would be used to fund it.
The announcement came on May 25. It represents a shift from Takaichi's earlier statements that ruled out the need for extra spending.
The supplementary budget is intended to address economic needs without increasing bond issuance.
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Chile's Senate approved a bill on Tuesday authorizing the Executive to incur up to US$6.200 million in additional debt during 2026. The initiative passed with 28 votes in favor, 15 against and one abstention.
The government plans to submit a draft extra budget exceeding 3 trillion yen on June 3 to bolster reserves amid Middle East tensions.
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Prime Minister Sanae Takaichi's cabinet approved its first economic and fiscal policy guidelines on Tuesday, emphasizing aggressive fiscal spending. The plan treats the next fiscal year as the first year of responsible and proactive spending and targets 370 trillion yen in combined investment by fiscal 2040.