By Makiko Yamazaki<\/p>\n
TOKYO, May 25 (Reuters) – Japan’s government will compile an extra budget of some 3 trillion yen ($19 \u200cbillion), Prime Minister Sanae Takaichi said on Monday, stoking \u200cconcerns over fiscal expansion that could further strain the country’s already-stretched finances.<\/p>\n
The extra \u200bbudget comes as the government decided to use roughly half of its 1 trillion yen contingency reserves to fund subsidies aimed at curbing utility bills, increasing the need to replenish reserves amid the \u200crisk of a prolonged \u2060Middle East crisis.<\/p>\n
Japan has also been extending separate subsidies to keep gasoline prices steady, a costly \u2060step that is quickly using up its contingency reserves as oil prices remain elevated.<\/p>\n
Takaichi said the extra budget will be financed by \u200bnew deficit-financing \u200bbonds, but added the measure \u200bcould be implemented without affecting \u200cthe bond market.<\/p>\n
The calendar-based issuance of government bonds will remain unchanged from the original plan, as stronger tax revenues, non-tax income and expected underspending are likely to eliminate the need for around 3 trillion yen in deficit bonds that had been scheduled \u200cfor issuance through June, she said.<\/p>\n
The \u200bplan, first reported earlier this month, \u200bmarks a reversal from \u200bher previous remarks ruling out the need for \u200can additional budget.<\/p>\n
A subsequent Reuters report \u200bthat the government \u200bis likely to issue fresh debt as part of funding for the extra budget helped drive the yield on \u200bthe benchmark 10-year \u200cJapanese government bond (JGB) to 2.8% last week, its highest since \u200bOctober 1996.<\/p>\n
($1 = 158.9300 yen)<\/p>\n
(Reporting by Makiko Yamazaki; Editing by \u200bAlison Williams and David Holmes)<\/p>\n","protected":false},"excerpt":{"rendered":"By Makiko Yamazaki TOKYO, May 25 (Reuters) – Japan’s government will compile an extra budget of some 3…\n","protected":false},"author":2,"featured_media":28262,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[174],"tags":[19383,191,189,22228,9254,188,13292,190,358],"class_list":["post-28261","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-budget","tag-economy","tag-economy-of-japan","tag-fiscal-expansion","tag-government-bonds","tag-japans-economy","tag-japan39s-government","tag-japanese-economy","tag-sanae-takaichi"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/28261","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=28261"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/28261\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/28262"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=28261"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=28261"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=28261"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}