Although the Japanese economy is still in a demanding situation due to COVID-19, currently, the number of new infections has been at its lowest level since last summer, and restrictions on behavior are gradually being eased. While taking all possible measures to manage the crisis, such as preventing the spread of the infection and strengthening the quarantine policy, Japan must seize this opportunity to resume socio-economic activity as soon as possible in this with-Corona state. Furthermore, it is essential to realize a virtuous cycle of growth and distribution by capturing the signs of social changes, such as digitalization, and investing in bringing about structural changes in industry and society. In addition, we need to pay close attention to the risk of the re-emergence of infection and an economic downturn so as not to interrupt the momentum of growth.

Based on this recognition, on November 19, the Cabinet decided on the economic measures to overcome new coronavirus infections and to carve out a new era.

The purpose of this economic stimulus package is to deliver relief and hope to people by overcoming the difficulties of the COVID-19 pandemic and paving the way for a post-Corona future.

Specifically, Japan will prevent the spread of COVID-19 infections, resume socio-economic activity in the with-Corona state, prepare for the next crisis, and launch new capitalism to open up the future society. Japan must ensure safety and security by promoting disaster prevention, disaster mitigation, and national land resilience.

Next, I would like to explain the outline of the FY2021 supplementary budget that has been submitted to the Diet for implementing the economic measures.

Regarding the general account, approximately 35.99 trillion yen has been appropriated for expenditures. This amount includes approximately 18.61 trillion yen to prevent COVID-19 infections from spreading, based on the economic measures. The government has appropriated approximately 1.77 trillion yen for the resumption of socio-economic activities under the with-Corona state and preparation for the next crisis, and approximately 8.25 trillion yen for launching new capitalism to open up future society. The government has also appropriated approximately 2.93 trillion yen to ensure safety and security through disaster prevention and mitigation and promote national land resilience.

Furthermore, the government has transferred approximately 2.27 trillion yen to the special account for national debt consolidation funds, authorized an increase of approximately 3.51 trillion yen in local allocation tax subsidies, and reduced approximately 1.57 trillion yen in default expenses.

In terms of revenue, we expect a revenue increase from taxes of approximately 6.43 trillion yen, considering recent revenue performance and trends in corporate earnings. In addition, we expect a non-tax revenue increase of approximately 1.35 trillion yen and incorporate the last fiscal year’s surplus of approximately 6.15 trillion yen.

As for revenue insufficiency, despite the above, we will issue public bonds for approximately 22.06 trillion yen.

As a result, the total amount of the FY2021 supplementary budget for the general account will be approximately 142.6 trillion yen, an increase of approximately 35.99 trillion yen in both revenue and expenditure compared to the initial budget for the general account.

We will also make the necessary amendments to the special account budget.

We have added approximately 920 billion yen to the Fiscal Investment and Loan Program based on the economic measures to promote active investment to realize a nation of science and technology and promote disaster prevention, disaster mitigation, and national land resilience.

This concludes my explanation of the outline of the supplementary budget for FY2021.

While preventing the spread of COVID-19 infections and resuming socio-economic activity, we need to realize a virtuous cycle of growth and distribution and put the economy on a self-sustaining growth path to open up a post-Corona future. For this reason, it is necessary to enact this supplementary budget as soon as possible.

I would like to request that the Diet deliberate on the budget and promptly approve it.