TOKYO: Japanese Prime Minister Fumio Kishida said on Monday that an additional economic package will be put together by the end of April to cushion the impact of rising crude oil and other resource prices.
Kishida stated in a parliamentary session that the package will protect the economy's recovery from the negative consequences of the Covid-19 outbreak while also assisting households in weathering the effects of increased prices.The recent depreciation of the Japanese yen against the US dollar has resulted in a major increase in import prices, notably energy-related cargoes, which has been passed on to average consumers in Japan.
According to government authorities in Japan, the current scenario in Ukraine, as well as the accompanying energy and economic impacts, is exacerbating the situation and beginning to be felt in resource-poor Japan. He went on to say, "We are at a key phase in rebuilding an economy that has been harmed by Covid-19."
Japan has enacted a record USD874 billion budget for the new fiscal year beginning in April, with Kishida eager to speed up spending to offset the economic hit caused by rising prices and the pandemic.
While new budget bond issuance will fall to 36.93 trillion yen, debt-service costs will rise to 24.34 trillion yen, guaranteeing Japan's fiscal health remains the lowest among industrialised nations.