Prime Minister Sanae Takaichi's government plans to issue a record amount of new bonds to fund its economic package. The supplementary budget totals about ¥18.3 trillion ($117 billion), with ¥11.7 trillion covered by additional bond issuance. Concerns persist over public finances amid rising yields.
The Japanese government is set to approve a supplementary budget to support its economic stimulus measures. According to a document reviewed on Thursday, the ¥18.3 trillion budget will be funded in part by ¥11.7 trillion in new bond issuance. To limit borrowing, it will also draw on ¥2.9 trillion in tax revenue surpluses, about ¥1 trillion in nontax revenue, and ¥2.7 trillion in unused funds from the previous fiscal year.
This exceeds the ¥6.7 trillion in bonds issued last year for former Prime Minister Shigeru Ishiba's economic package. Amid lingering concerns about public finances and rising yields on Japanese Government Bonds (JGBs), the government aims to ease the debt burden.
The move seeks to bolster the economy but raises worries over increasing debt levels. The Cabinet is expected to approve the budget on Friday.