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Japan appoves extra budget to flight inflation

Japan’s parliament on Wednesday approved an extra budget of 13.2 trillion yen (89.4 billion U.S. dollars) for the current fiscal year through next March to fund a new economic package designed to help households hit by rising prices and support the inflation-hit economy.

Of the total, 8.88 trillion yen will be secured by issuing new government bonds, which will put more strain on a pile of state debt already amounting to more than twice the size of the economy.

The new features in the package include giving low-income households who are exempt from paying tax 70,000 yen by the end of the year, retaining subsidies to lower fuel costs until next spring and increasing investment in key areas like semiconductors, artificial intelligence and space to make the country more competitive.

With the supplementary budget, the total size of government spending for fiscal 2023 will swell to a massive 127.58 trillion yen, of which about a third, or 44.5 trillion yen, will be funded by government bonds. (1 U.S. dollar equals 147.7 yen) ■

Famagusta Gazette