Japan’s energy subsidies drain funds at 300 billion yen monthly
Japan’s petrol subsidies are consuming around 300 billion yen per month from an allocated fund of 800 billion yen.
The country passed its largest-ever annual budget of 122 trillion yen in April, which has pressured the yen due to foreign investor concerns over the spending.
The finance ministry has indicated it can only intervene in currency markets twice more between now and November, limiting Tokyo’s defensive options.
U.S. Treasury Secretary is due in Japan to discuss yen weakness, adding external diplomatic pressure to an already strained domestic policy framework