The Japanese parliament has approved a record budget for next year

The Japanese parliament on Friday approved a record budget of 106.6 trillion yen (826.96 billion euros) for the next fiscal year 2021/22, which begins on April 1, 2021. The government also counts on expenditures to fight the pandemic of the new coronavirus, however, some analysts speculate about possible additional expenditures. The budget includes JPY 5 trillion for extraordinary expenses related to the pandemic. This is after three massive aid packages in the current fiscal year, which ends on March 31, 2021. The world's third largest economy is on the verge of decline in the fourth quarter of its 2020/21 financial year following the declaration of a second state of emergency in early January in connection with the pandemic. The Japanese economy last declined in the first quarter (April - June) of the ending financial year 2020/21. However, some analysts predict that the Tokyo government will release additional spending on the pandemic as politicians demand that the fiscal tap be kept open. For now, Finance Minister Taro Aso has resisted the idea of ​​further spending, arguing that the government can draw on crisis reserves if necessary. "I am not currently considering another additional budget," Aso told reporters after the budget was approved. "I know that other countries are increasing corporate income tax (in order to consolidate public finances), but at the moment I don't even think about increasing corporate income tax or turnover tax," he added. The budget for next year is a record for pandemic-related spending as well as support for a rapidly aging population, as well as record defense spending due to threats from North Korea and China. It also includes spending to help achieve digital transformation and carbon neutrality, further increasing Japan's debt burden, the largest of the advanced economies.