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Summary of METI’s FY2016 Secondary Supplementary Budget Draft

August 2016
The Ministry of Economy, Trade and Industry

  • To address risks inherent in a global economic slowdown, the government of Japan will take economic measures to achieve sustainable growth.
  • The Ministry of Economy, Trade and Industry (METI) will allocate 588 billion yen (5.7 billion US dollars) in the FY2016 Secondary Supplementary Budget to stimulate private sector investment.
  • The government of Japan will submit the supplementary budget to the Diet, and the Diet will deliberate on the budget.

Under the budget, the government of Japan aims to stimulate private-sector investment in the following three fields, in line with the policy goal of “Investment for the Future”: [1] SMEs, [2] resource development and [3] the fourth industrial revolution.

1. SMEs: Development of new products and services

  • The government will assist SMEs with costs for the development of new products or services utilizing IT systems or robots, thereby enhancing SME productivity.

100.13 billion yen (972 million US dollars)

  • The government will assist micro businesses, e.g., family-run stores, with marketing costs.

12.0 billion yen (117 million US dollars)

2. Resource development: Financing high-risk projects

  • The Japan Oil, Gas and Metals National Corporation (JOGMEC) financially supports resource development projects in Japan’s private sector. Through JOGMEC, the government will strive to raise capital to facilitate high-risk projects. Discussion at the G7 summit in 2016 underscored the possibility that Japan’s resource development projects could stagnate due to low crude-oil prices globally. By bolstering JOGMEC, Japan will promote stable resource development. To further this effort, Japan plans to revise the regulations governing JOGMEC.

162.8 billion yen (1.6 billion US dollars)

3. The fourth industrial revolution: Establishing Artificial Intelligence (AI) research bases

  • The National Institute of Advanced Industrial Science and Technology (AIST) is advancing joint research between universities and companies to develop core technologies essential for next generation industries. To fortify these R&D efforts in AI, Japan will establish a research center that combines the expertise of domestic and overseas researchers.

19.5 billion yen (189 million US dollars)

Reference

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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