The report says that the government is considering to revive subsidies for electricity and natural gas in the summer months this year.
The report says that the government is considering to revive subsidies for electricity and natural gas in the summer months this year. It is likely that said subsidies will cover usage from July through to September, with a budget that could reach around ¥500 billion.
For now, the source says that the government is planning to use reserve funds. That as opposed to compiling a supplementary budget, with prime minister Takaichi already looking into the proposal. Well, that’s a heavy cost but at least they’re choosing to tap into reserve funds here.
With the Japanese yen currency already under immense pressure and the economic outlook being hampered significantly by the Middle East conflict, more fiscal pressures will not be welcome at this time. The idea of the subsidies here is to help cover retail electricity and gas prices for the most part. That as the bigger impact of higher prices for LNG is expected to hit later around June.