Japan's parliament on Monday enacted a record ¥36 trillion ($320 billion) supplementary budget for fiscal 2021, partially financing the government's latest economic package to get the coronavirus pandemic-hit economy back on a solid recovery path.
Lavish spending plans under the first extra budget for the current fiscal year through March highlight Prime Minister Fumio Kishida's stance of prioritizing economic revitalization — while putting on the back burner, for the time being, restoration of the nation's fiscal health, which is the worst among advanced economies.
The government will be forced to issue new bonds worth ¥22.1 trillion to cover most of the supplementary budget, with the outstanding balance of government bonds, which need to be cleared by tax revenue, expected to top ¥1 quadrillion by March.