The Cabinet of Japan approved an additional budget of 936 billion yen ($8.4 billion) for the current fiscal year ending March 31, 2019. Therewith, according to the Nikkei, Japan’s Prime Minister Shinzo Abe confirmed that the second stage of a consumption tax (analogous to VAT) increase in the country would take place in October 2019. The tax will grow from 8% to 10%. Budget extra costs in the current fiscal year are mainly related to the reconstruction after natural disasters – earthquakes and typhoons. In total, 728 billion yen will be allocated for these purposes.
Besides, for the first time since 1961, the government will set aside 100 billion yen for reserve budget funds in case of new disasters.
Special bonds worth 695 billion yen will be issued to finance new expenditures. The remaining amount will be covered by the last year’s budget surplus.
