Takaichi says Japan will issue additional deficit-financing bonds for new supplementary budget.

Takaichi says Japan will issue additional deficit-financing bonds for new supplementary budget.

[Prime Minister Takaichi Spoke to the Press Regarding the Fiscal 2026 Supplementary Budget Taking into Account the Situation in the Middle East] As long-term interest rates continue to rise, I would like to hear your thoughts on whether the explanation you provided just now on the draft supplementary budget will be able to win over market confidence. I would also like to hear how you view accountability with regard to setting up a large reserve fund. In addition, as gasoline subsidies are also part of this, will you maintain the current goal of gasoline priced at 170 yen per liter, or are you now considering raising that price? Also, as for naphtha, please tell us, when you said that we have sufficient naphtha, does that mean that the downstream products refined from it, such as various substances or thinner, are also sufficient in terms of quantity, and this is simply a problem of bottlenecks? Or is this a case of some things also beginning to be in genuinely short supply? Finally, is it all right for the public to maintain its current way of living? I would like to know until roughly when it will be all right for the public to continue living their lives in the usual manner. Or, are you now considering asking people to conserve resources? (Prime Minister Takaichi)Thank you for your question. As I explained just now, for the new supplementary budget, from the perspective of minimizing risks, we will spare no effort in our responses. Beyond that, as for the revenue needed to cover this supplementary budget, we will issue additional deficit-financing bonds as a temporary measure that is truly urgent. At the same time, it appears that 3 trillion yen worth of deficit-financing bonds for the previous fiscal year, fiscal 2025, do not in fact need to be issued. This means that making adjustments within the overall amount of planned sovereign bond issuance will enable us to carry out this plan without increasing the total value of bonds issued to the market. Accordingly, we believe we can execute this proposal without the sovereign bond market being significantly impacted. As I stated earlier, we will achieve the sustainability of public finances while ensuring the confidence of the market by reducing the government debt-to-GDP ratio in a stable manner while keeping a constant watchful eye on daily market movements and economic indicators. Now, as for the reserve fund, that is a system designed to address unforeseen budget shortfalls. At this juncture, as the uncertain situation in the Middle East continues, I consider securing a reserve fund of ample size to enable appropriate and timely responses while also ensuring that people's daily lives and economic activities are not negatively affected to be both a fitting and necessary response within our budgeting regime. Until now, we have been obtaining approval at the Diet for additional reserve funds based on the particular circumstances each time. As for utilizing the reserve funds, we will use them appropriately, following the stipulations laid out in the Constitution and the Public Finance Act, and demonstrate proper accountability. Also, regar