TOKYO (MNI) – New Japanese Finance Minister Jun Azumi said on
Tuesday that the third supplementary budget for this fiscal year, most
of which will finance the reconstruction of the earthquake and
tsunami-ravaged Northeast, is expected to total more than Y10 trillion.
The government is expected to issue special reconstruction bonds
to finance the budget, with bond repayment financed by a tax hike.
Azumi said he would like to minimize the tax burden on consumers,
adding that it is “likely to be cut by Y3 trillion or more” through
various measures.
The government is reported to be ready to finance part of the
budget by selling state-owned assets, such as its shares in Japan Post
Holdings Co and Japan Tobacco Inc.
The introduction of a tax aimed at slowing global warming is also
“a choice” to help fund part of the extra budget, although talks with
various ministries and agencies will be needed to agree on such an
approach, Azumi said.
tokyo@marketnews.com
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