Japan has decided to issue new government bonds worth ¥22.1 trillion ($192 billion) to fund an extra budget for the current fiscal year through next March that will help finance an economic stimulus package amid the COVID-19 pandemic approved last week, according to sources close to the matter.
The envisaged supplementary budget of ¥31.6 trillion, which is expected to be approved by the Cabinet on Friday, will be used mainly for coronavirus measures and also securing a stable supply of semiconductors, the sources said Wednesday.
The issuance of the government bonds means most of the extra budget will be financed by debt, adding a further blow to the country's fiscal health.