Japan will lean heavily on extra tax revenue in a ┬е13.9 trillion ($92 billion) additional budget to finance Prime Minister Shigeru IshibaтАЩs stimulus package, according to people familiar with the matter.
The extra budget will partly be funded by ┬е3.83 trillion in higher-than-expected tax receipts and unused funds from the previous year, limiting the need for additional bond issuance to ┬е6.69 trillion, according to the people. The budget, which is slightly larger than last yearтАЩs, may spark questions about the necessity of such extensive spending given recent relatively solid economic growth.
Before unveiling the package, Ishiba had indicated heтАЩll deliver an extra budget thatтАЩs larger than last yearтАЩs, in an apparent attempt to bolster his popularity ahead of the general election. This yearтАЩs additional budget marginally exceeds former Prime Minister Fumio KishidaтАЩs ┬е13.2 trillion plan last year, suggesting Ishiba was trying to spend the minimum amount needed to keep his campaign promise.
