Japan OKs $216B extra budget to counter impact of inflation

TOKYO (AP) — Japan’s parliament has approved a hefty 29 trillion yen ($216 billion) supplementary budget to fund measures to counter the blow to household finances from rising food and utility costs and the weaker yen.

The budget approved Friday is the second batch of supplementary spending this year to help boost the economy.

The extra spending, funded mainly by government bonds, has added to concerns over the already heavy national debt.

Japan has mainly stuck to using government spending to counter inflation, instead of raising interest rates, because its economy has been growing at a slow pace for many years.

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