TOKYO, May 14 (Reuters) – Japan’s government is looking at compiling a supplementary budget to reduce the burden on households from rising fuel bills, Kyodo news agency reported on Thursday, a move that would put pressure on the country’s strained finances.
A supplementary budget for the current fiscal year would support households that are likely to be hit by elevated gasoline prices and utility bills during the peak-temperature summer season, Kyodo said, citing a few unnamed government sources.
The yield on the 30- and 40-year Japanese government bonds rose after the report was released as investors braced for increased debt issuance to fund the extra budget.
Prime Minister Sanae Takaichi has repeatedly downplayed the chances of compiling an extra budget with the view that the government has sufficient funds to pay for current fuel subsidies.
(Reporting by Kantaro Komiya and Hina Suzuki; Writing by Leika Kihara; Editing by Muralikumar Anantharaman and Thomas Derpinghaus)