Japanese

Provisional Translation

[Opening remarks:]

Minister)

The FY2026 budget was deliberated by both the House of Representatives and the House of Councillors and has just been enacted. We would like to express our sincere gratitude to all those who supported us, including all of you. Thank you very much. ... In light of the current situation in the Middle East, we must respond appropriately to the circumstances surrounding the Japanese economy and work to strengthen it. ... In addition, at the end of last month, we brought together public and private financial institutions and requested that they provide thorough financing support, including lower interest rates on safety-net loans. We also asked them to establish a safety net, including repayment deferrals where necessary, so that businesses would not face cash shortfalls.

[Questions and answers:]

Q.

You have given us various explanations about the significance of the budget, but I would like to ask about the situation in the Middle East. In this initial budget, reserve funds of ¥1 trillion are included, and at the end of the previous fiscal year, reserve funds for the previous fiscal year were also used to top up the fund. Given the need to prepare for natural disasters as well, some argue that this may not be sufficient and are calling for a supplementary budget. I realize I am asking this just after the initial budget has been enacted, but could you tell us your current thinking on a possible supplementary budget?

A.

... While several parties have already submitted budget amendment proposals related to energy, another concern raised was whether financial support would be sufficient. I served as Chairperson for the Research Commission on the Finance and Banking Systems for four years, and, as part of business revitalization support in response to COVID-19 and the subsequent rise in prices, almost the full amount of approximately ¥11 trillion in capital contributions to the Japan Finance Corporation (JFC) remains available for effectively interest-free and unsecured loans and capital-like subordinated loans. In other words, even without increasing the budget, the necessary budgetary backing is already in place, and all financial safety-net measures can be fully covered.