TOKYO Jan 15 Japan's cabinet approved on
Tuesday a 13.1 trillion yen ($146.8 billion) extra budget, which
includes 10.3 trillion yen in economic stimulus spending
announced last week, as the government tries to boost a flagging
The extra budget, which also contains 2.6 trillion yen to
offset a shortfall in the pensions system, takes government
spending for the fiscal year ending in March to 100.5 trillion
yen, a statement from the finance minister showed.
Compared with previous fiscal years when the government has
compiled extra budgets, government spending reached the
third-highest on record, a finance minister official told
reporters at a briefing.
The government will sell an additional 5.2 trillion yen in
government bonds, which would raise bond issuance in fiscal
2012/2013 to 49.5 trillion yen, according to the statement.
For the current fiscal year, the government will rely on
bond income to fund 49.2 percent of spending, which is the
second-highest ratio on record, the official said.
The highest ratio of 52.1 percent was set when the
government compiled an extra budget in fiscal 2009/2010 due to
the financial crisis.
Japan's cabinet approved an economic stimulus package on
Friday in the biggest spending boost since the financial crisis,
as Prime Minister Shinzo Abe pursues an ambitious agenda to spur
growth and end nagging deflation.