TOKYO (Reuters), – Japan’s finance minister Shunichi Suzuki announced Wednesday that the government of Japan will take immediate and flexible measures to reduce the suffering caused by rising living costs to help the economy recover from COVID-induced woes.

Suzuki made his remarks just before the debate began on a supplement budget of 2.7 trillionyen ($21billion). This was to assist households and small companies with higher food and energy costs.

Bond sales will finance the extra budget, further challenging a public debt already twice as high as its annual economic output.

Suzuki pledged to help Japan recover from the pandemic. He encouraged Japanese companies to smoothen their rising costs, and he raised wages in order to create a positive cycle of economic growth.

Suzuki stated to the lower house that “uncertainty is growing, primarily because Russia’s invasion in Ukraine has destabilised commodity prices.”

This could slow down the economic recovery due to the coronavirus.

The government will spend 1.17 trillion Japanese yen to mitigate the effects of the rising oil prices, out of the total 2.7 trillion yen allocated in the Supplementary Budget. These will include subsidies for gasoline wholesalers.

Additional budgets also include 1.52 trillion yen in budget reserves, which the government can use later when necessary.

($1 = 127.0200 yen)