Japan’s cabinet has approved an additional 17.4 billion euros for disaster relief following the March earthquake, tsunami and nuclear disaster.
Tokyo said the extra outlay will not mean it having to issue new bonds though it warned bigger spending later this year is likely to strain already stretched public finances.
The money will aid businesses and build new homes.
The extra budget follows a 4 trillion yen (35 billion euros) emergency budget passed by parliament in May to cope with the world’s costliest natural disaster. The supplementary budget will be sent to parliament in mid-July.
The extra budget will be funded entirely with leftover funds from last fiscal year’s budget.
The government is keen to fund as much of emergency spending as possible without new borrowing as it is saddled with a public debt that is already twice the size of the economy.