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Politics

Japan to rely on debt for nearly 80% of $200bn stimulus package

Extra budget brings yearly borrowing to second-highest amount on record

Japan's government expects a bump in tax revenue, but spending is rising even faster.   © Reuters

TOKYO -- The bulk of Japan's proposed 29 trillion yen ($198 billion) supplementary budget to cushion the blow of inflation will be paid for through new borrowing.

The spending plan, which the cabinet aims to approve Tuesday, includes the equivalent of tens of billions of dollars in subsidies to reduce energy costs for households and businesses, along with funding for child care and technology.

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