December 9, 2024

We have prepared a draft supplementary budget for FY2024 in response to “Comprehensive Economic Measures to Foster the Safety and Security of Citizens and Sustained Growth“, which was recently approved by the Cabinet.

Before requesting deliberation on it, I would like to provide an outline of the draft supplementary budget.

(Introduction)

The Japanese economy is showing positive trends, such as wage increases at the highest rate in 33 years, capital investments exceeding more than 100 trillion yen in nominal terms, and GDP exceeding more than 600 trillion yen in nominal terms. It is necessary to make sure that this virtuous cycle will not be reversed, and that deflation will be overcome and the transition to a new stage of the economy will be realized.

Based on this recognition, “Comprehensive Economic Measures to Foster the Safety and Security of Citizens and Sustained Growth” was approved by the Cabinet on November 22.

These comprehensive economic measures are designed to create an economy where wage growth constantly outpaces price growth, and to ensure a transition to a “growth-oriented economy driven by wage increases and investment.”

Specifically, the government will carry out the following initiatives:

First, “the growth of the national and local economies” to increase current and future wages and incomes for all generations. Second, “overcoming high prices” to pave the way for a transition to a growth-oriented economy that leaves no one behind.Third, “ensuring the safety and security of the people” to lay the foundation for a transition to a growth-oriented economy.

In promoting future economic and fiscal management, based on the principle that a sound economy is the foundation of fiscal health, the government will realize fiscal consolidation while strongly advancing economic revitalization. In short, the government will achieve both economic revival and fiscal consolidation.

(Summary of the FY2024 supplementary budget)

Next, I would like to outline the FY2024 supplementary budget, which was submitted to the Diet mainly for implementing the comprehensive economic measures.

Regarding the general account, we are asking for approximately 13.94 trillion yen in terms of expenditures.

As for the details, based on the comprehensive economic measures: approximately 5.75 trillion yen will be appropriated for expenses related to “the growth of the national and local economies” ; approximately 3.39 trillion yen for expenses related to “overcoming high prices” ; and approximately 4.79 trillion yen for expenses related to “ensuring the safety and security of the people.”

Furthermore, we will allocate approximately 430 billion yen as a transfer to the Special Account for the National Debt Consolidation Fund, approximately 1.04 trillion yen as local allocation tax grants, and approximately 180 billion yen as other expenses while reducing the existing expenditure by approximately 1.63 trillion yen.

In terms of revenue, tax revenues are expected to increase by approximately 3.83 trillion yen, considering the recent tax collection and other factors. In addition, we anticipate an increase of approximately 1.87 trillion yen in non-tax revenues and the surplus of approximately 1.56 trillion yen from the previous fiscal year.

As for the revenue insufficiency, despite the above, we will issue public bonds for approximately 6.69 trillion yen.

As a result, the total general account budget for FY2024, after the supplement, will be approximately 126.52 trillion yen, which is an increase by approximately 13.94 trillion yen in both revenue and expenditure.

Also, necessary supplementary measures were made to the special account budget.

Regarding the fiscal investment and loan program, based on the comprehensive economic measures, approximately 1.12 trillion yen have been added to promote initiatives such as “the growth of the national and local economies” and “ensuring the safety and security of the people”.

(Conclusion)

This concludes my explanation of the outline of the draft supplementary budget for FY2024.

The Japanese economy is showing positive signs pointing to recovery and is facing a good opportunity to ensure this recovery and realize a growth-oriented economy. In order to protect Japan, the people, and rural areas and secure opportunities for young people and women, and to create a future in which all citizens can feel safe and secure, it is necessary to enact this supplementary budget as soon as possible.

I hereby request that the Diet deliberate on the supplementary budget and promptly give its approval.