The Lower House passed a \u00a53.11 trillion ($19.5 billion) supplementary budget on Thursday to cushion households and businesses against higher energy costs stemming from the conflict in the Middle East, paving the way for enactment on Friday.<\/p>\n
Approved by the Cabinet a day earlier, the budget will create a new \u00a52.5 trillion reserve fund to respond to developments in the Middle East and set aside \u00a5100 billion in local grants to support liquefied petroleum gas (LPG) users and businesses that rely on extra-high-voltage electricity supplies.<\/p>\n
It also includes \u00a5513.5 billion to replenish the existing reserve fund, which was tapped in May to finance electricity and city gas subsidies for the summer months.<\/p>\n
The unusually swift timetable reflects the administration\u2019s push to act before peak season.<\/p>\n
Responding to questions during a meeting of the Lower House Budget Committee on Thursday, Prime Minister Sanae Takaichi reiterated that the supplementary budget was designed to \u201cminimize risks\u201d from the increasingly uncertain situation in the Middle East.\u00a0<\/p>\n
\u201cWe will monitor future price trends and their impact on the economy, and promptly consider appropriate measures as necessary,\u201d she said.<\/p>\n
The entire package will be financed through deficit-covering bonds. But the prime minister said the impact on markets would be limited, as the new issuance will be offset by roughly \u00a53 trillion in deficit-covering bonds from the previous fiscal year that the government no longer expects to issue.<\/p>\n
Global energy markets have remained volatile since the U.S. and Israel launched attacks on Iran in February, with shipping through the Strait of Hormuz \u2014 a critical maritime trade corridor \u2014 severely constrained.<\/p>\n
Japan, which relies heavily on Persian Gulf oil, has likewise been exposed to the shock. The administration has rolled out fuel subsidies and released oil reserves to limit the impact on consumers. Gas at the pump has largely stayed at or below the government\u2019s target of around \u00a5170 per liter, though doubts persist over the target\u2019s sustainability.<\/p>\n
While the need for energy relief has drawn broad recognition across party lines, opposition parties have criticized the latest bill for overdependence on reserve funds rather than itemized spending.<\/p>\n
\u201c(The government) should spell out what the funds will be used for, how much will be spent and what outcomes it hopes to achieve before seeking deliberation,\u201d said Junya Ogawa, head of the Centrist Reform Alliance, on Thursday.<\/p>\n
The supplementary budget is expected to be enacted after it is passed by the Upper House on Friday.<\/p>\n","protected":false},"excerpt":{"rendered":"The Lower House passed a \u00a53.11 trillion ($19.5 billion) supplementary budget on Thursday to cushion households and businesses…\n","protected":false},"author":2,"featured_media":54135,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[176],"tags":[235,650,14,177,190,179,449,180,178,358],"class_list":["post-54134","post","type-post","status-publish","format-standard","has-post-thumbnail","category-politics","tag-budgets","tag-inflation","tag-iran","tag-japans-politics","tag-japanese-economy","tag-japanese-politics","tag-middle-east","tag-politics","tag-politics-of-japan","tag-sanae-takaichi"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/54134","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=54134"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/54134\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/54135"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=54134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=54134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=54134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}