Fumio Kishida's cabinet approves Japan's $198 billion extra budget

Japan's cabinet approved a 29.1 trillion yen ($198 billion) extra budget to fund an economic stimulus package that aims to ease the impact of inflation on people and companies.

The second supplementary budget for the year ending in March will be partly funded by 22.9 trillion yen of government bond issuance, according to the finance ministry Tuesday. The latest plan adds to the nation's already ballooning debt burden.

"It's important to seek both economic recovery as well as fiscal health," Finance Minister Shunichi Suzuki told reporters. "But we mustn't hesitate to spend in times of crisis."


The measures are largely an effort by Prime Minister Fumio Kishida to stem the impact of rising prices on households and businesses exacerbated by the slide in the yen to three-decade lows. Public discontent over inflation has helped push down Kishida's popularity to levels that have put past administrations in danger.