Japan’s Ministry of Finance (MOF) announced on Tuesday, the country’s cabinet approved a second supplementary budget for this fiscal year to fund an economic stimulus package, backed by extra new debt, per Reuters.

The additional budget is worth 29.1 trillion Japanese Yen (JPY), the MOF reports.

Japanese Finance Minister Shunichi Suzuki said that they “will quickly prepare to present an extra budget with parliament for approval.”

Additional quotes

“It's true stimulus budget spending to make japan's fiscal position even more severe.”

“Should not prolong massive spending, must be aware of the risk of wealth outflows through the trade deficit.”

“Must seek exit from massive fiscal stimulus.”

Market reaction

USDJPY is trading neutral at 146.62, having erased all of its early gains. Investors assess the latest stimulus news from Japan.