Japan's Prime Minister Sanae Takaichi announced Monday (May 11) that her government will consider drafting a supplementary budget for fiscal 2026. This move comes amid growing worries over the impact of heightened crude oil prices caused by the conflict in the Middle East.
Speaking at a press conference, Takaichi underscored that rising energy costs could directly affect people's livelihoods and business operations. Consequently, a supplementary budget will be evaluated to provide financial support to offset the adverse effects of elevated oil costs.
No details have been released yet regarding the scale or specific measures of the proposed budget. Analysts, however, suggest the government may focus on fuel subsidies, assistance for transport and manufacturing firms, and support for low-income households to alleviate the pressure from living expenses.
The move reflects the Japanese government's growing unease about continued volatility in global oil prices, which threatens plans to spur economic growth and contain inflation.
