Japan PM looks to mull extra budget for FY 2026 to ease oil price impact

TOKYO - Prime Minister Sanae Takaichi said Monday her government will consider compiling an extra budget for fiscal 2026 to ease the impact of elevated crude oil prices, fueling renewed concerns about Japan's deteriorating finances as long-term bond yields move at nearly 30-year highs.

The size of the supplementary budget has come under scrutiny after a record 122.31 trillion yen ($770 billion) budget was enacted for the year starting April, underscoring Japan's heavy reliance on debt and reflecting Takaichi's stance of pursuing expansionary spending to spur economic growth.