Japan to issue 6.7t yuan in bonds as fiscal stimulus

The Japanese government is set to issue 6.7 trillion yen ($44 billion) in new government bonds to finance a supplementary budget for Prime Minister Shigeru Ishiba’s economic stimulus package.

The package, expected to be approved on Friday, will allocate 13.9 trillion yen in general-account expenditure to alleviate the financial burden on households amidst rising prices.

To fund the package, the government plans to utilise a 3.8 trillion yen tax surplus resulting from strong corporate earnings in the current fiscal year. However, the remaining 10.1 trillion yen will be covered by issuing additional government bonds, further exacerbating Japan’s already dire fiscal situation.

Attribution: Xinhua

Subediting: M. S. Salama