TOKYO (AA): Japan on Wednesday passed a historic budget for 2019 fiscal starting April 1 amounting to nearly $920 billion, local media reported.
According to daily Japan Today, the Japanese Diet — the country’s lawmaking body — passed a record 101.46 trillion-yen ($920 billion) budget for fiscal 2019.
“This is the first time the general account budget has topped 100 trillion yen on an initial basis,” Japan Today said, adding that the governments would routinely bring supplementary budget bills at the end of the fiscal year if spending costs went beyond their limit.
It said the current budget had increased spending on social security and defense as well as stimulus measures to keep the economy afloat after an upcoming consumption tax hike takes effect.
Prime Minister Abe’s government is expecting a record 62.5 trillion yen in tax revenue during the same fiscal year. The budget was passed in the House of Councilors in the Diet which is controlled by the ruling coalition of the Liberal Democratic Party and Komeito. The Diet’s lower house passed the budget on March 1.
The daily said the focus of the budget would be a 2.03 trillion-yen package that would underpin domestic demand after the consumption tax increased from the current 8 percent to 10 percent in October.
“The package includes a rebate program for purchases made by credit cards and other cashless means, shopping vouchers for households with low incomes or small children, and public works spending to shore up infrastructure against natural disasters,” it added.
The biggest chunk of the budget, a record 34.06 trillion yen, has been set aside for social security, including health care and pensions, which are swelling amid a rapidly aging population.
Japan’s defense spending accounted for a record 5.26 trillion yen, rising from the previous year due in part to purchases of the Aegis Ashore missile defense system and half a dozen F-35A stealth fighters, according to the newspaper.
