PM Takaichi Vows to Submit Draft Extra Budget Next Week

Tokyo, May 25 (Jiji Press)–Japanese Prime Minister Sanae Takaichi said Monday that the government will submit a draft fiscal 2026 supplementary budget to cope with high inflation reflecting Middle East tensions to the Diet, or parliament, next week. Spending under the extra budget will total slightly more than 3 trillion yen, she told reporters. The government will set up new reserve funds in response to the Middle East situation that can be used for measures related to higher energy prices, she said. Takaichi also said that planned utility-related subsidies will reduce electricity and gas bills in July-September by a total of about 5,000 yen per household. The government will issue additional deficit-covering bonds to finance the supplementary budget, the prime minister said. But an increase in the total issue amount can be avoided since the government will likely be able to do without issuing 3 trillion yen in earlier-planned deficit-covering bonds, Takaichi explained. Takaichi also said the country “will be able to procure oil stably until next spring,” adding, “It will be possible to supply naphtha-derived products until after the start of next year.” The government will make energy-saving requests again this year, she said. END [Copyright The Jiji Press, Ltd.]