Overview
- Prime Minister Sanae Takaichi's cabinet approved ¥18.3 trillion in general-account spending to fund the stimulus, up from ¥13.9 trillion in last year’s extra budget.
- The government will issue about ¥11.7 trillion in new bonds to cover the shortfall after stronger tax receipts, taking total bond issuance for the year to an expected ¥40.3 trillion.
- Officials said scheduled sales of short- and medium-term JGBs will rise, with no increase in long- or super-long issuance in response to higher yields at the long end.
- The ¥21.3 trillion stimulus includes ¥2.7 trillion in tax cuts and ¥8.9 trillion for cost-of-living relief such as ¥20,000 per child payments and energy subsidies.
- Roughly ¥6.4 trillion is earmarked for strategic sectors including shipbuilding, semiconductors, and artificial intelligence, with the government seeking Diet approval by the end of next month.