ISTANBUL

The Japanese parliament on Tuesday enacted a $118 billion supplementary budget for its current fiscal year.

The additional budget, cleared by both the House of Councillors and the House of Representatives, comes as part of Prime Minister Sanae Takaichi's expansionary stimulus package, according to the Kyodo News.

Japan's initial budget for the fiscal year, which begins in April and ends in March, was $745.6 billion.

The latest package marked the largest one since fiscal 2022 during the coronavirus pandemic.

An amount of $57 billion was earmarked for relief steps for households, including electricity and gas subsidies for the first three months of next year, cash handouts for families with children, and financial assistance for local governments.

Some $41 billion is planned to be spent on expanding investment for crisis management and growth.

An additional $10 billion from the supplementary budget is also set aside for security and diplomacy, raising Tokyo's defense-related spending to its target of 2% of gross domestic product in fiscal 2025, two years ahead of the previous schedule.

Meanwhile, the budget was criticized by opposition lawmakers, amid concerns about Japan's strained fiscal consolidation.