Tokyo, July 26 (Jiji Press)–The Japanese government is expected to carry over into fiscal 2021 a record 30 trillion yen in general-account budget funds for fiscal 2020 due to delays in spending, it was learned on Monday.
The amount equals about 40 pct of the 73 trillion yen that the government earmarked under its three supplementary budgets for fiscal 2020, which ended in March this year, to tackle the novel coronavirus crisis.
The carryover comes after coronavirus relief for eateries meeting requests for shorter business hours were not provided smoothly, and the Go To Travel domestic tourism promotion campaign was suspended due to the spread of infections.
A large amount of budgeted funds will be carried over for grants offered to hospitals accepting coronavirus patients and companies reforming their business models.
Also, budgets for some public works projects were not used on schedule.
In principle, the government has to spend all of its allocated funds by the end of a given fiscal year. Several trillion yen has been carried over annually into the following year, however, due to delays in spending caused by natural disasters and other reasons.
The amount of carryover stood at 6.6 trillion yen in fiscal 2019. The current record carryover is 7.6 trillion yen in fiscal 2012.
The amount ballooned in fiscal 2020 partly because the total outlays in the year, including under the initial budget, reached a record 175.7 trillion yen amid the coronavirus crisis.
Some ruling party lawmakers are demanding that the government compile a supplementary budget for fiscal 2021 to shore up the coronavirus-battered economy.
On the other hand, the Finance Ministry is taking a cautious stance as it focuses on using up the already budgeted funds steadily. Also, some 4 trillion yen remains in reserve funds for coronavirus countermeasures.