The Cabinet approved a ¥2.7 trillion draft extra budget for fiscal 2022 on Tuesday, to ease the pain of surging energy, food and other prices stemming from Russia’s invasion of Ukraine.
Once it clears parliament, the supplementary budget for the fiscal year that started in April will be used to finance part of a ¥6.2 trillion relief package compiled in late April.
About ¥1.5 trillion of the extra budget will be spent to replenish reserve funds that the government is using to implement some of the measures in the relief package such as subsidies for oil wholesalers to bring down retail gasoline prices and cash handouts of ¥50,000 per child for low-income households.