Tokyo: The Japanese government decided Tuesday to allocate 388.1 billion yen ($2.7 billion) from reserve funds for the current fiscal year to subsidize the energy bills of households and businesses during the summer amid inflation. These subsidies are part of relief measures recently unveiled to counter the adverse economic impact of US tariffs.
According to Qatar News Agency, the overall relief package is estimated at up to 2.8 trillion yen, including spending by local governments and private companies, officials said. “Effects of (the US tariffs) are becoming apparent in some companies,” Japanese Prime Minister Shigeru Ishiba said during a government meeting. He noted that some firms are projecting profit declines in their earnings in the current fiscal year ending.
“As some small and medium-sized companies have voiced concern over business conditions, we will make an all-out effort to support such companies that account for a large share of Japan’s workforce,” Ishiba added. Japan has allocated around 739.5 billion yen for fiscal year 2025 as reserve funds, that are typically set aside for emergencies, including natural disasters. Following the latest decision, the remaining balance will stand at about 351.4 billion yen.