Japan Plans to Use Budget Reserve to Support Electricity and Gas

SadaNews - Japanese Finance Minister Satsuki Katayama stated that the government will use approximately $3.2 billion from this year's annual budget reserve fund to finance utility support within an additional budget.

Katayama added to reporters on Tuesday after a cabinet meeting: "Regarding electricity and gas prices from July to September, we decided to use 513.5 billion yen, or $3.2 billion, from this year's reserve fund as a source of financing to provide support that will keep prices below last summer's levels."

Her remarks came a day after Prime Minister Sanae Takaiichi assured investors that the additional budget, which may be referred to parliament as early as next week, will not force the government to increase bond issuance on an annual basis.

The Prime Minister stated on Monday that some planned bond issuances under last fiscal year's budget are likely to be canceled, following the calculation of higher-than-expected tax revenues and unspent expenditures, allowing the government to keep bond issuance unchanged on an annual basis.

Katayama pointed out that the Prime Minister noted during the cabinet meeting that with ongoing uncertainty regarding the situation in the Middle East, the government should prepare flexible support measures "that are not limited to supporting electricity and gas prices."