Dec. 2 (UPI) — The Japanese Parliament on Friday approved a $214 billion “extra budget” for the current fiscal year in an effort to corral inflation and improve its economy.
The supplemental budget, which will run through March, won the approval of the House of Councilors after the House of Representatives agreed on the measure earlier in the week.
Supporters of the supplemental budget said it will allow the government to take inflation-relief action in a broader package to address ballooning utility bills caused by Russia’s invasion of Ukraine.
Inflation is a huge concern politically for Prime Minister Fumio Kishida, who has seen his popularity erode since taking office partly due to inflation.
Japan’s consumer prices marked a 40-year high by increasing in October, clocking in at 3.6% from 2021. That coupled with a weakening yen created multiple pressures for Japanese consumers.
The Japanese government is estimating that its moves could limit consumer inflation by no less than 1.2%.
Part of the budget was earmarked to retain government subsidies to oil wholesalers in order to prevent a jump in gasoline and kerosene prices. That move alone would limit price increases on one of the most expensive parts of family budgets during the winter.
The Japanese government said it will get most of its funding by issuing bonds despite the country’s fiscal health ailing more than its advanced counterparts in other parts of the world.
