Takaichi Announces a Supplemental Budget
Prime Minister Sanae Takaichi announced that she would consider formulating a FY2026 supplemental budget for coming summer in a meeting of leaders of leading coalition on May 18 th . Although she has been reluctant to having a supplemental budget, Takaichi is turning around, facing economic difficulty stemming from prolonged war in Iran or other international relations. Concerning possible mobilization of governmental spendings, interest rate of long-term bond showed steep hike which implied decline of bond values. No supplemental budget has been Takaichi’s one of the pillars for her economic policy titled “responsible and proactive public finances.” “We will make a clean break from our current budget formulation process in which it is assumed that a supplementary budget will be compiled each fiscal year,” said Takaichi in her policy speech at the beginning of current session of the Diet in February. Takaichi’s budget reform plan was aimed at enhancing p...