Japanese Prime Minister Sanae Takaichi unveiled Japan’s largest round of extra spending since the easing of pandemic restrictions last week. Now she faces the question of how to fund it without adding to market nervousness.
Her likely goal will be to minimize the use of new bond issuance in an extra budget to finance the ¥17.7 trillion ($113 billion) in fresh spending cited in the package by finding other sources of funds and savings in already committed expenditure. The extra budget is expected to be approved by the cabinet on Friday.
AloJapan.com