The Cabinet approved Tuesday a ¥21.84 trillion third supplementary budget for fiscal 2020, to finance the government's latest economic package aimed at ensuring the coronavirus-stricken economy stays on a recovery track.
The stimulus entails new national bond issuance worth ¥22.40 trillion, which will also make up for an expected shortfall in tax revenue for the fiscal year through March. The government has revised down its revenue estimate from ¥63.51 trillion to ¥55.13 trillion given the impact of COVID-19 on corporate earnings.
As a result, the nation's total new debt issuance for the current fiscal year will hit a record high of over ¥112 trillion — more than double the previous record of ¥51.95 trillion marked in fiscal 2009 following the global financial crisis.