skip to main content

Japan passes $147 billion mini-budget

Japan - Worst post-war slump
Japan - Worst post-war slump

Japan's parliament has passed a record 13.9 trillion yen ($147 billion) supplementary budget for fiscal year 2009.

It is hoped the mini-budget will help turn around the recession-hit economy.

The extra budget will finance most of a stimulus package announced by Prime Minister Taro Aso in April, which totalled 15.4 trillion yen or about 3% of gross domestic product.

The stimulus plan, designed to pull the world's second biggest economy out of its worst post-war slump, includes money for renewable energy development, unemployment support and new spending on medical and nursing care.

The government pushed the bill through the legislature despite its rejection in the opposition-controlled upper house. Japan's constitution allows the lower house to over-rule the upper house in budget matters.

Japan last week said its economy, Asia's biggest, suffered its sharpest contraction on record in the year's first quarter, shrinking 4% compared with the previous three-month period.

Aso, who faces elections this year, has said the stimulus package will help boost Japan's economy by about 2% this year.