Japan to Compile Third Extra Budget, Says Ruling Party’s Tax Chief
(Bloomberg) -- Japan’s ruling party tax chief Akira Amari said Thursday the government will put together another extra budget this year, adding to two earlier supplementary budgets aimed at supporting businesses and households through the pandemic.
“There’s certain to be a third extra budget,” Liberal Democratic Party tax chief Amari said at an online press conference. Amari added that the budget would likely be compiled around Dec. 14-15.
Some 85% of economists surveyed by Bloomberg earlier this month said they expected the government to put together another extra budget by the end of the year.
Even with several trillion yen of reserves left over for use from the previous extra budgets, analysts have pointed out that a likely fall in tax revenues by itself would probably necessitate another supplementary budget. That leaves in doubt how much actual extra spending the additional budget would have to aid the economic recovery and help households and firms.
Prime Minister Yoshihide Suga has repeatedly said the government won’t hesitate to take further action to help the economy recover from the pandemic.
Amari also said that given the impact of the coronavirus on the economy, Japan should be more careful about raising taxes for now.
The country also needs a tax policy that supports digitalization, and must collaborate with Europe and the U.S. in this area to uphold values such as democracy and the rule of law, he said.
Improved digitalization is a central part of Suga’s policy agenda.
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