The Cabinet approved Friday an extra budget totaling ¥4.47 trillion for this fiscal year, to support reconstruction efforts following natural disasters and prepare mitigation measures for similarly catastrophic events in the future.
To finance the additional spending, the government will issue ¥2.23 trillion of deficit-covering bonds to make up for a shortfall in tax revenue, which came on the back of a drop in corporate contributions amid a slowdown in the global economy.
It is the first time in three years for the world's third-largest economy to issue additional deficit-covering bonds in the middle of a fiscal year.