The National Diet building is seen in this file photo taken in Chiyoda Ward, Tokyo. (Mainichi/Junichi Sasaki)
TOKYO (Kyodo) -- Japan's House of Representatives Wednesday approved a record 36.0 trillion yen ($320 billion) supplementary budget for fiscal 2021 to partially fund an economic package to ease the fallout from the prolonged coronavirus pandemic.
The extra budget, approved by Prime Minister Fumio Kishida's Cabinet late last month and submitted to the lower house on Dec. 6, is expected to clear the House of Councillors on Monday, according to government sources.
The budget will finance part of the government's new stimulus measures rolled out in mid-November to support the virus-stricken economy while preparing for another wave of COVID-19 infections that could occur during the winter amid fears over the spread of the Omicron variant of the coronavirus.
Of the total, 31.6 trillion yen will be allocated for the policy package, of which fiscal spending will total a record 55.7 trillion yen. With private funds included, the size of the stimulus is about 78.9 trillion yen.
Under the supplementary budget, 18.6 trillion yen will be used for steps to curb the virus's spread and improve medical care systems, such as 2.0 trillion yen for hospitals to secure more beds for COVID-19 patients.
For the government's COVID-19 vaccine rollout, 1.3 trillion yen will be set aside.
About 1.2 trillion yen is earmarked for the government's distribution of 100,000 yen in cash and vouchers for children aged 18 or younger in households where the primary earner's annual income is less than 9.6 million yen.
Kishida's government had originally planned that local governments would first send 50,000 yen in cash and the remainder in vouchers but later decided to allow them to deliver 100,000 yen entirely in cash.
His government changed the policy amid criticism that issuing vouchers would incur massive additional costs and add to the burden on municipalities currently preparing to provide residents with booster shots for COVID-19.
The extra budget entails a new government bond issuance worth 22.1 trillion yen, ballooning Japan's already huge debt pile that has been more than twice the size of its economy and the worst among industrialized countries in recent years.
In addition to the extra budget, the stimulus will be funded by the initial budget for fiscal 2022 set to be compiled later this month, as well as reserve funds for fiscal 2021 to combat the pandemic, which the government can use without parliament approval.
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