Japan considers second supplementary budget for disaster relief

The Japanese government is considering the compilation of a second supplementary budget for the 2026 fiscal year. This budget is primarily intended to fund reconstruction and recovery efforts following recent natural disasters, including earthquakes and heavy rainfall.

Unlike previous large-scale supplementary budgets used to combat rising living costs, this upcoming measure is expected to be relatively small and is not aimed at economic stimulation. The funds will support medium-to-long-term disaster recovery and replenish reserve funds used for emergency expenditures. Additionally, the budget may include increases in civil service personnel costs as recommended by the National Personnel Authority.

The government plans to begin drafting the budget in November, with the goal of submitting it for deliberation during the ordinary Diet session early next year. This follows a first supplementary budget of approximately 3.11 trillion yen approved in June, which was utilized to provide gasoline subsidies to mitigate the impact of high energy prices caused by Middle East tensions.