The second supplementary budget bill will earmark about 77 billion yen ($950 million) to help companies and individuals facing the "double debt" problem in areas hit by the March 11 disaster, The Asahi Shimbun has learned.
The second supplementary budget bill will earmark about 77 billion yen ($950 million) to help companies and individuals facing the "double debt" problem in areas hit by the March 11 disaster, The Asahi Shimbun has learned.
The extra budget, worth 2 trillion yen, also allocates about 265 billion yen in compensation for victims of the accident at the Fukushima No. 1 nuclear power plant and other related expenses, according to a draft of the bill.
The administration of Prime Minister Naoto Kan plans to submit the bill to the Diet in mid-July.
The budget will be financed by surplus money from the fiscal 2010 account settlement, and no new government bonds will be issued.
The measures addressing the "double debt" problem are intended to help enterprises already in debt before the March 11 Great East Japan Earthquake restart their operations without having to take out new loans for reconstruction.
The draft bill allocates 19.3 billion yen to build fishery facilities in disaster-stricken areas, including the restoration of ice-making operations, one of Kan's policy priorities.
About 18.4 billion yen will be used to cover the interest on debts of small and midsize businesses until authorities decide whether those enterprises can be rehabilitated.
The extra budget draft will provide 120 billion yen in compensation for the nuclear accident, the maximum amount for the government under the Act on Compensation for Nuclear Damage.
Considering the huge extent of damage caused by the nuclear accident, total compensation for the victims is certain to far exceed the upper limit of the act.
Compensation related to the Fukushima No. 2 nuclear power plant will be dealt with in the third extra budget or through the use of the government's discretionary reserves.
The draft for the second extra budget allocates 7 billion yen to fund a new organization that will deal with compensation issues. Power utilities that have nuclear plants will provide an equal amount for personnel and other costs.
To investigate the health impact on residents, 96.2 billion yen will be provided to a foundation established by Fukushima Prefecture. The money will be used to conduct mid- to long-term cancer checkups on children and to decontaminate schools and parks for radioactivity.
(This article was written by Shinobu Konno and Hiroshi Takata.)