Supplemental Budget Passes the Diet
The Diet passed a supplemental budget for supporting households which are suffering from price inflation caused by the war in Iran on June 5th. Although Prime Minister Sanae Takaichi has been reluctant to form a supplemental budget, international security situation did not allow her keeping her own words. Total spendings amounting over 3 trillion yen will be brought by issuance of governmental bonds. Takaichi still insists on her political agenda named “responsible and proactive public finances.” Exact amount of spendings of the supplemental budget in fiscal year 2026 is 3.1135 trillion yen. It can be broken down to 1) 2.5 trillion yen for the reserve to meet situation in the Middle East, 2) 513.5 billion yen for refilling the reserve in annual budget for FY2026, and 3) 100 billion yen for local governments that need to support households using liquified petroleum gas. 2.5 trillion yen is expected to be spent for subsidy to support gasoline price. Making a cle...