Japan plans $35 Billion extra budget for disaster relief, yet no more debt issue

Japan will not issue new debt to fund an initial extra budget of more than $35 billion for disaster relief, the Asahi newspaper said, in a sign the government is wary of alarming bond investors by adding too much to Japan’s already huge debt pile.

But after the first extra budget, which will focus on funding immediate cleanup and repair work from last month’s devastating earthquake and tsunami, the government will likely spend far more in subsequent emergency budgets and may need to issue new bonds to cover the costs, analysts say.

The more than 3 trillion yen ($35 billion) in the supplemental budget will pay for repairing roads, ports and schools, as well as helping those in quake-hit regions in Japan’s northeast find new jobs, the Asahi reported on Wednesday.

Read the rest of the story: Japan plans 3 trillion yen extra budget, no debt issue: media.