TOKYO: Prime Minister Sanae Takaichi&#39;s government backed on Wednesday $19 billion in additional spending to help Japanese households struggling with soaring everyday costs driven by the Iran war. The budget could reportedly be passed as soon as Friday in the legislature dominated by the ruling Liberal Democratic Party and allies of Takaichi, who previously said the money would go toward easing petrol, electricity and gas costs. The extra budget was &quot;decided&quot; at a cabinet meeting, the prime minister&#39;s office said on its website. Top government spokesman Minoru Kihara told reporters at a news conference the cabinet had allocated 3.1135 trillion yen ($19 billion). That includes 2.5 trillion yen for a newly established &quot;contingency reserve&quot; for the situation in the Middle East, he said. &quot;Amid ongoing uncertainty in the situation in the Middle East, we have formulated this budget from the standpoint of minimizing risk,&quot; Kihara said. He added that the budget would allow for &quot;robust financial readiness&quot; and that the government would closely monitor future price trends to ensure that the daily lives of the public and economic activity are not disrupted. In May, leading potato chip maker Calbee unveiled a new grey packaging for 14 product lines, swapping its signature orange-and-yellow packets, with local media attributing the move to an ink shortage linked to the Iran war. Takaichi said the government expects to secure a stable supply of oil until next spring. She added that alternative supplies of naphtha, an oil byproduct used in a wide range of industries, from outside the Middle East, have recovered to more than 80% of their previous levels. Japan&#39;s central bank hiked its inflation forecasts in April and cut its growth projections after the Iran war sent oil prices soaring. Kihara said the supplementary budget would be covered by deficit-financing bonds. However, total bond issuance will not rise, he added, as some debt authorized in the previous fiscal year will not be issued due to expected tax revenues, among other factors.

Sanae Takaichi - (Photo: Sanae Takaichi's X Account)

Asia

Japan approved a ¥3.1 trillion ($19 billion) supplementary budget, including a large Middle East contingency fund, to cushion households from Iran war-driven rises in fuel, electricity, and gas costs.

Japan's govt backs $19B to dampen Iran war impact

CANBERRA, Australia: A global oil supply squeeze is inflicting an &quot;enormous impact&quot; on the Asia-Pacific region, Japan Prime Minister Sanae Takaichi said Monday. Speaking in Canberra after talks with Australian Prime Minister Anthony Albanese, she said the two countries would respond urgently to secure stable energy supplies. Roughly one-fifth of the world&#39;s oil normally flows through the Strait of Hormuz, where shipping has been throttled. Eighty percent of that oil is destined for Asia, according to the International Energy Agency. &quot;The effective closure of the Strait of Hormuz has been inflicting enormous impact on the Indo-Pacific,&quot; the Japanese leader told journalists. &quot;We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency.&quot; The two countries aim to strengthen autonomy and resilience to secure stable supplies of energy, Takaichi said. Australia is the biggest supplier of liquefied natural gas to Japan, which in turn is a source for about seven percent of Australia&#39;s diesel.&nbsp;&#39;Global shocks&#39;&nbsp;The two countries issued a string of statements vowing to work together on energy, the economy, defense, and critical minerals. &quot;These agreements are to the benefit of both of our people,&quot; Albanese said. &quot;For Australians, it will mean we are less vulnerable to global shocks like we are seeing right now because of conflict in the Middle East.&quot; Japan&#39;s government has said it is also keen to ensure a stable supply of critical minerals, essential for semiconductors, electric vehicle batteries and weapons systems. Australia has touted its abundant critical minerals as a way to loosen China&#39;s grip over global supplies of rare earths. Australia and Japan have strengthened their defense ties, too, striking a Aus$10 billion (US$6 billion) deal last year for Japan to provide Mogami-class stealth warships to the Australian navy.

Business

Roughly one-fifth of the world's oil normally flows through the Strait of Hormuz, where shipping has been throttled; 80% of that oil is destined for Asia, according to the International Energy Agency.

Articles tagged with "Japan Prime Minister Sanae Takaichi"

Japan's govt backs $19B to dampen Iran war impact

Japan PM says oil crisis has 'enormous impact' in Asia-Pacific

Japan's govt backs $19B to dampen Iran war impact