The Lower House on Monday passed a ¥778 billion supplementary budget for fiscal 2016 to help deal with the aftermath of the deadly earthquakes in Kyushu last month.
The bill containing measures to support Kumamoto Prefecture and other areas affected by the quakes will now be taken up in the Upper House, where it is likely to be passed on Tuesday.
The government will avoid issuing additional bonds by using reduced interest payments on government debt afforded by the Bank of Japan's adoption of a negative interest rate in late January.
The additional expenditure includes a ¥700 billion reserve fund with usage subject to Cabinet approval. The reserve fund is expected to be used to rebuild businesses, repair infrastructure and deal with agricultural damage.
The remaining ¥78 billion will be used for such purposes as helping people rebuild their livelihoods, build temporary housing and run evacuation facilities.