Japan Seen Forgoing 2nd Extra Budget for FY 2026

Tokyo, Sept. 3 (Jiji Press)–The Japanese government is planning to do without a second supplementary budget for fiscal 2026, government and ruling party sources said Thursday. While the government and ruling parties are considering convening an extraordinary session of the Diet in early October, a government source said, “Prime Minister Sanae Takaichi does not intend to submit a supplementary budget bill.” Following a major earthquake in Kumamoto Prefecture, southwestern Japan, in July, there were calls within the Takaichi administration to draw up a fresh supplementary budget. However, the government now believes that responses to the earthquake, as well as recent rain disasters across the country, can be financed with reserve funds under the fiscal 2026 initial budget and the first extra budget. The remaining amount of general reserve funds is around 800 billion yen. In addition, about 1.9 trillion yen is left in reserve funds for responses to the situation in the Middle East. Takaichi advocates reducing reliance on supplementary budgets. At a press conference on Thursday, Chief Cabinet Secretary Minoru Kihara said, “We will prepare a supplementary budget only for measures that are truly urgent and imperative.” He added that the government will use reserve funds to respond flexibly if necessary. END [Copyright The Jiji Press, Ltd.]