Japan's parliament on Friday approved a 3.11 trillion yen ($19 billion) supplementary budget aimed at easing the impact of rising energy costs, fast-tracking the measure through both chambers in just two days as inflationary pressures increase.
The emergency spending package cleared the House of Councillors on Friday after gaining support from some opposition parties, a day after passing the House of Representatives, Kyodo News reported.
The supplementary budget comes just two months after the enactment of Japan's fiscal 2026 budget and reflects growing concern over the economic impact of the prolonged conflict in the Middle East.
Rising crude oil prices and disruptions to energy supplies through the Strait of Hormuz have increased costs for the resource-poor country, prompting calls across the political spectrum for additional support measures.
The package includes a 2.5 trillion yen ($15.3 billion) reserve fund primarily intended to keep gasoline prices at around 170 yen per liter through subsidies for oil wholesalers.
Another 513.5 billion yen ($3.1 billion) has been allocated for electricity and gas subsidies between July and September, when demand for cooling typically surges during the summer months.
An additional 100 billion yen ($610 million) will be provided to local governments to support households using liquefied petroleum gas (LPG) and businesses facing elevated electricity costs.
Prime Minister Sanae Takaichi had initially argued against compiling a supplementary budget, citing concerns about Japan's fiscal health. The government ultimately proceeded with the package, which will be financed entirely through deficit-covering bonds.
By Anadolu Staff
Anadolu Agency
