The Japanese parliament has begun debating a supplementary budget submitted by the government of Sanae Takaichi, amounting to about ¥18.3 trillion (roughly US$118 billion), the largest since the COVID-19 pandemic and significantly higher than last year’s ¥13.9 trillion.
Around half of the spending will be allocated to supporting households facing rising prices, with inflation remaining around 3 percent. The package includes grants of ¥20,000 per child (about US$135), as well as the elimination of the temporary fuel tax. It also includes funding for strategic sectors such as the semiconductor industry and raises defense spending to 2 percent of GDP.
