HomeNewsNewsJapan approves record budget of $940bn to accelerate economic recovery

Japan approves record budget of $940bn to accelerate economic recovery

Japan’s Cabinet approved on Friday an annual budget of more than $940 billion – a record for a 10th straight year – prioritising the response to battling Covid-19 and the prime minister’s aim of growth and wealth distribution.

The budget of 107.6 trillion yen ($94bn) for the fiscal year that starts in April 2022 is Japan’s biggest initial spending plan, underlining a priority of reviving the pandemic-hit economy over returning to long-term fiscal health.

However, when asked if heavy spending to fight the Covid-19 pandemic could force the government to alter its primary balance target, Finance Minister Shunichi Suzuki said, “I don’t think so, for now.”

Mr Suzuki renewed his pledge to stick to the target, saying it was important to keep up efforts to improve public finances as the cornerstone of Japan’s credibility.

Prime Minister Fumio Kishida’s first budget, which parliament must approve by the end of the current fiscal year in…

Read more…