TOKYO (Reuters – Japan’s cabinet has approved its extra budget for fiscal 2015, with $313 billion in spending to help offset the COVID-19 epidemic. As Japan continues to tap its stimulus resources even when other countries close them down,

The budget also includes financial assistance for corporations and cash payouts to children’s households. It is not fiscally conservative, but it does contain some populist elements.

Kishida prioritises economic growth over financial reform for the short-term in order to encourage citizens and allow them to enjoy the benefits of wealth distribution, which he calls “new capitalism”.

Spending an additional 36 trillion Japanese yen (or $312.09 billion) will be funded by 22 trillion more government bonds, which would increase the burden on industrial nations with their highest debt.

The government of Kishida will produce next month an annual state budget, which is expected to be implemented over 16 months.

These budgets also aim to increase growth in green and digital industries and strengthen chip factories. Meanwhile, the ruling bloc began Friday debates on the annual tax code revision. This discussion focused on measures like tax incentives for wage rises.

Government allocated 774 billion to increase advanced chip output.

Last week, Kishida’s Cabinet unveiled the economic package of 79 trillion Japanese yen with record spending of 55.7 trillion yen.

As it examines its plan to elicit interest-bearing bonds in the market, the finance ministry won’t change JGB market issuance as it follows new stimulus.

The record-breaking 221.4 trillionyen market issuance will not be surpassed by the 138.2 billion yen interest-bearing bond issuances for fiscal 2022.

($1 = 115.3500 yen)