The economic stimulus package aimed at easing the impact of inflation on people and companies needs additional funding. Japan's Cabinet is about to approve an additional 29.1 trillion yen ($198 billion) budget.
According to documents obtained by Bloomberg, the reporting year ends in March. The supplemental budget will be partly financed by issuing government bonds totaling 22.9 trillion yen. The country's growing debt burden is increasing again.
Prime Minister Fumio Kishida is applying these measures in an attempt to limit the impact of rising prices on households and businesses. In addition, the yen has reached its lowest level in 30 years.
The Cabinet of Ministers is expected to approve the supplementary budget on Tuesday. It will then be presented to parliament, where it is probably accepted, considering the majority of Kishida's governing coalition. Finance Minister Shunichi Suzuki has sounded his intends to get it passed by the end of this year.