JAPAN: New budget shows deficit spending will continue as pandemic recedes

The Suga cabinet approved its draft FY2021 budget on Monday, 21 December, which for the third-straight year topped JPY 100tn (USD 966.6bn), climbing to a record high of roughly JPY 106tn (USD 1.02tn). While the top priority is providing fiscal stimulus for Japan’s Covid-19-stricken economy, the budget is Prime Minister Yoshihide Suga’s first opportunity to shape public spending to reflect his policy priorities. Additional support will be provided by the JPY 19.2tn (USD 185.6bn) third FY2020 supplemental budget that will be submitted to the Diet in January. To this end,