World News

Japan to compile extra budget to fund coronavirus stimulus: draft

TOKYO (Reuters) – Japan will compile a supplementary budget worth 16.8057 trillion yen ($154.45 billion) to help fund stimulus spending to combat its coronavirus outbreak, according to a draft of the spending plan obtained by Reuters.

The government will issue the same amount of additional government bonds to fund the extra budget, with a construction bond issuance at 2.3290 trillion yen and deficit-covering bonds at 14.4767 trillion yen, the draft showed.

It is rare for the government to compile an extra budget at the beginning of the new fiscal year in April, highlighting the urgency of the outbreak.

The budget is due to be approved by the cabinet later on Tuesday.

Prime Minister Shinzo Abe has pledged to roll out a 108 trillion yen ($990 billion) stimulus package, equal to 20% the size of the economy, vowing to take “all steps” to battle the deepening fallout from the coronavirus pandemic.

(Reporting by Takaya Yamaguchi; Writing by Tetsushi Kajimoto; Editing by Robert Birsel)