The Cabinet on Saturday approved a ¥4.79 trillion second supplementary budget for fiscal 2008 that rolls out support measures for households, small businesses and regional economies hit hard by the economic slowdown.
The extra budget was compiled to finance a ¥26.9 trillion second stimulus package unveiled by Prime Minister Taro Aso in late October, and features a ¥2.04 trillion cash-dispersal program. It is expected to be presented to the Diet on Jan. 5 for deliberations.
The supplementary budget will actually involve ¥4.85 trillion in fiscal spending, but the government will trim that with cost-cutting measures.
It also refers to steps in the stimulus package, such as an initiative that allows the government's stock-purchasing entity to buy ¥20 trillion in stocks from banks and raises the limit on public funds to be used to boost bank capital from ¥2 trillion to ¥12 trillion.
The extra budget also earmarks ¥490.5 billion to expand a credit guarantee program and safety-net loans to small businesses, ¥500 billion to cut expressway tolls, ¥600 billion to help regional economies.