Japan Revised Government Budget to Finance Reconstruction

Japan’s government and ruling party are considering an initial extra budget of over one trillion yen to finance reconstruction work following the disaster earlier this month, informed sources said Wednesday.

The first supplementary budget for fiscal 2011 starting next month is set to include projects to clear debris and construct temporary housing after the 9.0-magnitute earthquake and tsunami struck northeastern Japan on March 11, the sources said.

In the aftermath of the 1995 earthquake that devastated western Japan’s Kobe area, the government drew up an initial supplementary budget of 1,022.3 billion yen, which was enacted about one and a half months later.

A senior official at the ruling Democratic Party of Japan said the initial supplementary budget this time will be worth at least one trillion and several hundred billion yen.

The government and DPJ plan to compile two or more supplementary budgets this time.

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