Japan Seen Adopting Extra Budget

The Japanese government is widely expected to compile an extra budget for this fiscal year, despite the improving economy, economists polled by Reuters say. Compiling extra budgets has become a habit for Japan as it struggles to shore up stagnant activity with funds for everything from shopping vouchers and aid for struggling rural regions to reconstruction after the 2011 tsunami and nuclear disaster. This year, however, the Japanese and global economies are in good shape, and 31 out of 35 analysts polled in the Sept. 5-12 survey said there was no need for an extra budget, besides steps for natural disaster relief. “The economy is at full employment conditions and the global economy is steadily expanding,” said Hiroaki Mutou, chief economist at Tokai Tokyo Research Institute. “It would not be acceptable to compile a huge extra budget.” However, 22 economists predicted that the government would stick with its pattern and pass extra spending anyway, the poll showed.