Japan plans $19 billion supplementary budget to offset rising energy costs

The government of Japan plans to compile a supplementary budget exceeding 3 trillion yen (approximately $19 billion) for fiscal year 2026 to ease the economic impact of rising energy prices linked to prolonged tensions in the Middle East, Prime Minister Sanae Takaichi said on May 25.

Speaking to reporters, Takaichi said the draft budget could be submitted to parliament as early as next week, Caliber.Az reports via foreign media. 

The proposed measures are aimed at supporting households and businesses facing higher fuel and electricity costs as global energy markets remain volatile amid geopolitical instability in the Middle East.

In addition, the Japanese government plans to allocate 500 billion yen from reserve funds to help households pay utility bills during the peak summer season from July through September, when electricity consumption typically rises due to increased air conditioning use.

By Sabina Mammadli