On May 17, Japanese Prime Minister Sanae Takaichi stated that the government will submit a supplementary budget for fiscal year 2026 exceeding 3 trillion yen (approximately $19 billion). The budget aims to prepare for the impact of soaring energy prices amid ongoing tensions in the Middle East.
Speaking at a press conference after a cabinet meeting, PM Takaichi emphasized: “We will draft a supplementary budget in the current fiscal year to support households and businesses affected by energy price volatility.” She added that the budget will focus on measures such as subsidies for gasoline and gas, as well as electricity bill assistance for low-income households.
The decision comes as international crude oil and liquefied natural gas (LNG) prices surge due to instability in the Middle East, driving up Japan’s energy import costs. Analysts expect the supplementary budget to be approved by Japan's parliament in the coming months, prioritizing financial steps to alleviate public burden.
Previously, the Japanese government has repeatedly adjusted its annual budget estimates to cope with energy price shocks, especially since the escalation of conflicts in the Middle East. Last year, Tokyo also allocated about 2.5 trillion yen to energy price support programs.
