Japan’s government is set to compile an extra budget worth around 2.7-2.9 trillion yen ($24-26 billion) for the fiscal year to March 2018, with additional bond issuance of around 1 trillion yen to help fund the spending, government sources told Reuters.
In addition to construction bond issuance worth around 1 trillion yen, the government will scrape together cash reserves from the previous fiscal year’s budget and money left unused from debt servicing due to lower-than-estimated borrowing costs, the sources said.
No deficit-covering bond issuance was planned, the sources said on condition of anonymity because the plan has not yet been finalised.
Following October’s big election win, Prime Minister Shinzo Abe’s cabinet has made plans to beef up childcare support, boost productivity at small and medium-sized companies, and strengthen competitiveness of the farm, fishery and forestry industries.
Source: Reuters (Reporting by Takaya Yamaguchi; Writing by Tetsushi Kajimoto; Editing by Kim Coghill)