Overview of the Fiscal Year 2024 Supplementary Budget Proposal

1. Overview

On November 29, 2024, the Cabinet of Japan approved the supplementary budget proposal for the FY2024. The total general account expenditure for this budget amounts to 13.9433 trillion yen. This proposal is set to be submitted to the extraordinary Diet session convening on December 9, 2024, with the goal of passing it by the end of the year.

The budget proposal from the Ministry of Economy, Trade and Industry (METI) is structured around three main pillars, with a significant portion of the budget allocated to the first pillar, "Growth of the National and Regional Economies."

Notably, the budget includes subsidies for medium-sized and small enterprises, energy efficiency, wage increases, semiconductors, and AI. There is also a strong focus on supporting the promotion of Japanese exports overseas.

2. Looking Ahead

It is important to note that the above information pertains to the "budget proposal" stage, and it is currently awaiting deliberation and approval in the extraordinary Diet session in December 2024.

In addition to the budget, there are also tax support measures. The government and its ruling parties are expected to announce the tax reform outline in mid-December 2024. METI has submitted requests for tax incentives aimed at revitalizing regional economies and promoting AI.

If you are planning to make growth investments with the support of subsidies and tax incentives, we encourage you to consult with Deloitte Tohmatsu for advice.

Related Links

• Japan Tax & Legal Inbound podcast/webcast Series
• Dbriefs Podcasts
• Apple Podcast - Deloitte Dbriefs Asia Pacific
• tax@hand

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