Japanese Government Executes 2nd Supplementary Budget of 1342 Trillion Won for COVID-19 Response

[Image source=Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] The Japanese government held an extraordinary cabinet meeting on the afternoon of the 27th and decided on the second supplementary budget for COVID-19 response amounting to 117.1 trillion yen (approximately 1,342 trillion won), according to a report by Nihon Keizai Shimbun.

According to the report, this includes combined fiscal expenditures of the central and local governments as well as loans from financial institutions, with the total additional expenditure in the second supplementary budget reaching 31.9114 trillion yen (approximately 366 trillion won).

All funding will be procured through government bond issuance.

The second supplementary budget projects include expanding employment support subsidies, providing financial and rent support for small and medium-sized enterprises, supporting companies with deteriorating performance, and cash payments to university students experiencing reduced part-time income.

The employment adjustment subsidy, paid to companies that have not laid off employees despite worsening business conditions, will see the daily payment cap per person raised from 8,330 yen to 15,000 yen.

Additionally, a new provision will be established to pay up to 6 million yen in rent support to companies and sole proprietors experiencing a sharp decline in sales.

The Japanese government aims to submit the second supplementary budget, decided at the cabinet meeting that afternoon, to the National Diet on the 6th of next month and have it passed by the 12th of the same month.

This content was produced with the assistance of AI translation services.