TOKYO (AP) – Japan’s parliament on Tuesday adopted an additional budget of 2.7 trillion yen ($ 21 billion) to combat rising fuel and food prices following Russia’s invasion of Ukraine.
The additional budget is for the current fiscal year, which began on April 1, and will fund part of an emergency economic package of 6.2 trillion yen ($ 48 billion) adopted by Prime Minister Fumio Kishida’s government in late April, which includes subsidies to wholesalers. oil to minimize the impact on consumers.
Nearly 1.2 trillion yen ($ 9.4 billion) will be used to extend the current oil subsidy program until the end of September.
Crude oil prices have risen sharply due to fears of supply disruptions from Russia due to its invasion of Ukraine. Prices for wheat and corn also rose significantly, leading to higher food prices.
The additional budget will be funded by a new government bond issue, which will add to the burden of the world’s third-largest economy, whose fiscal condition is already the worst among major economies.
Japan has adopted an initial budget for the current fiscal year of a record 107.60 trillion yen ($ 840 billion), including 5.5 trillion yen ($ 4.2 billion) in reserve funds for the COVID-19 pandemic and other emergency targets. .