Japan Weighs Extra Budget for Energy Subsidies

Tokyo, May 15 (Jiji Press)–The Japanese government is considering compiling a supplementary budget to cover additional costs, as it is mulling providing electricity and city gas subsidies in July-September and keeping gasoline subsidies in place, government and ruling party officials said Friday. The government is apparently considering increasing reserves by assembling an extra budget. Prime Minister Sanae Takaichi is expected to make a final decision as early as this month, depending on developments in the war in Iran, which has sent energy prices soaring. At a press conference, Chief Cabinet Secretary Minoru Kihara said, “We will make appropriate decisions according to the situation and take necessary measures.” About 980 billion yen remained in a pool of funds for the gasoline subsidies as of the end of April. Reserve funds set aside under the fiscal 2026 budget, totaling 1 trillion yen, may run short if the Iran war is prolonged. Takaichi said at a parliamentary meeting on Monday that she does not think that a supplementary budget is necessary anytime soon, rejecting calls from opposition parties for the government to put it together. END [Copyright The Jiji Press, Ltd.]