The government of Japan finalized the second supplementary budget for 2020 at a cabinet meeting Monday, kyodo news agency reported, as a supplementary measure to overcome the economic crisis caused by the covid-19 outbreak, in order to strengthen employment and support business capital turnover.
The total general accounting expenditure in the budget was reported to be 31.9114 trillion yen, surpassing the 25.6 trillion yen in the first supplementary budget and setting a record for the supplementary budget.
The finance will be raised in full through Treasury bonds. Add in the original budget and the first supplementary budget, and the total amount of new debt issued through 2020 is a record 90.2 trillion yen, with 56.3% of spending coming from borrowing.
That would be the first time since 2009, after the lehman crisis, that the ratio has exceeded 50%, the report said. Spending totalled y160.3tn.
In the second supplementary budget, the government will introduce new subsidies to ease rent costs for businesses and self-employed people whose sales have plunged. In addition, the government will increase temporary subsidies for local governments and for low-income single-parent families.
"We are mentally prepared for the arrival of a crisis larger than the lehman crisis and we are sticking to the Japanese economy," taro aso, finance minister, said at a press conference after the cabinet meeting. The government and the ruling party are expected to submit their proposals to the diet on June 8, with a view to their formation by June 12.