Government officials on Monday said that Japan would be expected to pay an additional reconstruction cost of 1.5 trillion yen (13.8 billion U.S. dollars) for the March 2011 earthquake, tsunami, and nuclear crisis in northeastern Japan.
According to the government, the additional costs will be generated in the fiscal period between 2021 and 2025.
The officials said that Prime Minister Shinzo Abe’s cabinet would likely adopt a draft reconstruction policy drawn up by a government committee by the end of the year, while related bills are expected to be submitted during 2020 ordinary Diet session.
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According to the government, the total expenditure for reconstructions work through 2020 is estimated at slightly more than 31 trillion yen (285.2 billion dollars).
According to the draft, the government will use tax revenue including an increase in income tax 2020 to fund the reconstruction works from fiscal 2021 to 2025.
The Japanese government also plans to extend the work of the Reconstruction Agency for an extra 10 years, compared to its closure originally planned to take place in March 2021 so that it can continue aiding the reconstruction of areas contaminated by the Fukushima Daiichi nuclear plant disaster.
Established in February 2012, the agency has been working as the central control point for efforts to reconstruct disaster-stricken areas.