The Japan Financial Services Agency published a transcript of Finance Minister Katayama’s post-Cabinet press conference, in which he set out preparations for an 11-day provisional budget for fiscal year Reiwa 8 while the main budget continues to be debated in the House of Councillors. He also confirmed a Cabinet decision to use JPY 800.7bn from the fiscal year Reiwa 7 contingency reserve to maintain energy price support measures into the new fiscal year. The reserve allocation comprises JPY 794.8bn for emergency mitigation measures related to gasoline and other fuels, and JPY 5.8bn to provide comparable support for liquefied petroleum gas prices for taxi operators. On the provisional budget’s scope, he referenced an established approach of recording minimum necessary administrative expenses while allowing for interim-period measures needed to avoid disruption to people’s lives, but did not provide item-level detail. He rejected the concept of a “supplementary provisional budget” that would add spending not included in the main budget, citing the purpose of the provisional budget under the Public Finance Law, and noted that the Cabinet cannot amend the fiscal year Reiwa 8 budget after it has passed the House of Representatives under Article 59 of the Diet Act. Katayama said the government is aiming to enact both the fiscal year Reiwa 8 budget-related bills and any provisional budget within the fiscal year, and noted that a JPY 1tn reserve would be available from the start of the new fiscal year if the main budget is enacted. Separately, he said work continues to disclose key documents related to the Moritomo Gakuen case within the month, but without a specific timetable, and reiterated that the government is monitoring Middle East developments in the context of energy prices and market conditions.

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