(MENAFN) Japan’s parliament agreed on a 28.92 trillion yen (USD215.9 billion) extra budget on Friday to grow its economy and avoid the effect of surging inflation.
The additional supplementary budget of the economic year targets “to help struggling households cope with accelerating inflation and support an economy facing downward pressure,” as said by domestic news outlet Kyodo News.
Japan’s yearly inflation level stood at 3.6 percent this October, marking a remarkable surge from 0.1 percent in comparison to the same month last year.
The administration targets at “to limit the rise in consumer inflation by 1.2 percent or more,” the report mentioned.
“As the COVID-19 pandemic and Russia’s invasion of Ukraine have raised the need for more fiscal stimulus to support the economy, massive reserve funds, which can be used at the discretion of the Cabinet without parliamentary approval, have come under greater scrutiny,” as mentioned in the report.
Adding “With the addition of 4.74 trillion yen (USD35.36 billion) in the latest budget, the total amount of such reserve funds earmarked for the current year totaled 11.76 trillion yen (USD87.73 billion).”
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