Japan Begins Preparing Extra Budget to Combat Inflation

Tokyo, May 18 (Jiji Press)–The Japanese government has begun preparing a fiscal 2026 supplementary budget in response to price increases stemming from the situation surrounding Iran. The government plans to submit a supplementary budget bill by the July 17 end of the ongoing Diet session. At a liaison meeting between the government and ruling parties at the prime minister’s office on Monday, Prime Minister Sanae Takaichi said that she has instructed Finance Minister Satsuki Katayama to come up with fiscal measures including an extra budget to “minimize risks.” Addressing concerns about the supply of oil-related products amid the situation in the Middle East, Takaichi said, “We will do everything to resolve supply problems so that the people and their daily lives will not be affected.” The prime minister asked the policy chiefs of her ruling Liberal Democratic Party and its coalition partner, the Japan Innovation Party, to promptly draw up a program to lower electricity and gas rates for July-September below last year’s levels. She also expressed her intention to consider extending subsidies to cover gasoline and other fuel costs. As of the end of April, about 980 billion yen remained in the government’s funds for the subsidies. There are worries among both ruling and opposition parties that the funds will run out by summer. “We will work to support the people’s daily lives by compiling a supplementary budget and taking measures regarding electricity, gas and energy,” JIP leader Hirofumi Yoshimura, also Osaka governor, told reporters after the liaison meeting. END [Copyright The Jiji Press, Ltd.]