Details of the second FY16 supplementary budget the government is compiling were disclosed on Aug. 22. Economic stimulation allocations will consist of 3.9871 trillion yen in general account expenditures or a total of 4.5221 trillion yen, including special account expenditures for reconstruction for the Great East Japan Earthquake and so forth. An additional 2.75 trillion yen of construction bonds will be issued to cover the funding shortfall. A cabinet decision on Aug. 24 will approve these allocations as the first part of an economic stimulation package worth 28.1 trillion yen for submission to the extraordinary Diet session in September.
Reserves for reconstruction after the Kumamoto earthquakes will be reduced by 410 billion yen, while interest payments for government bonds will also be reduced by 414.5 billion yen due to lower interest rates. General account expenditures under the supplementary budget, excluding these two items, will add up to 3.2869 trillion yen. Surplus funds from FY15 will also be used to fund this supplementary budget.
A total of 713.7 billion yen will be allocated for projects to accelerate the realization of a society for the dynamic engagement of all citizens; 277 billion yen will be spent to improve the childcare and nursing care environment; and 367.3 billion yen will be spent to hand out 15,000 yen each to low income earners.
The total budget for “21st Century infrastructure building” will be 1.4056 trillion yen, with 100.1 billion yen to be spent for attracting more tourists to Japan and 431.7 billion yen to be used to promote the exportation of agriculture, forestry and fisheries products. In addition to the above, 1.5 trillion yen from the Fiscal Investment and Loan Program (FILP) will be utilized to advance the construction schedule of the Linear Chuo Shinkansen, and 827.9 billion yen will be devoted to the construction of the five projected Shinkansen route extensions. Additional FILP funding totaling 3.6022 trillion yen is being sought.
Total allocations for post-quake reconstruction and disaster prevention will be 1.9688 trillion yen, with 413.9 billion yen being allotted for recovery and reconstruction for the Kumamoto earthquakes and 545.6 billion yen for the Great East Japan Earthquake.