{"text":[[{"start":10.2,"text":"Japan’s Prime Minister Sanae Takaichi has asked her government to compile a supplementary budget to fund huge government subsidies for energy, after weeks betting that the Iran war would end before the cost of shielding consumers became too high."}],[{"start":24.75,"text":"Takaichi’s abrupt U-turn, which came in a meeting with coalition partners on Monday and followed repeated denials that an extra budget was necessary, triggered speculation that her government might fund the move by issuing new bonds, fuelling concern about Japan’s fiscal position."}],[{"start":42.4,"text":"The yield on the benchmark 10-year Japanese government bond rose slightly to 2.75 per cent on Monday. The yen weakened to about ¥159 versus the dollar, a level at which analysts said last week that authorities might intervene to support the currency."}],[{"start":59.75,"text":"Takaichi won a landslide election in February on promises of increased spending and fiscal responsibility, as well as a pledge to end Japan’s habit of issuing supplementary budgets."}],[{"start":71.25,"text":"But the government has already been subsidising oil wholesalers for more than seven weeks to keep petrol prices low for consumers. Analysts warned that burden was likely to increase in the summer, when electricity use rises."}],[{"start":84.4,"text":"Japan imports more than 90 per cent of its crude oil from the Middle East."}],[{"start":89.2,"text":"Some analysts suggested that persistent inflation and increased tax revenues could spare Takaichi’s government from having to issue more bonds. The government could also dip into a ¥1tn ($6.3bn) reserve fund in the current budget that is generally held back for natural disaster relief."}],[{"start":106.80000000000001,"text":"Government officials including finance minister Satsuki Katayama had downplayed the need for a supplementary budget as recently as Friday, despite calculations by many economists that such a move was inevitable."}],[{"start":119.70000000000002,"text":"Takaichi told coalition partners on Monday, however, that she had instructed Katayama to start work on a supplementary budget the previous week."}],[{"start":128.35000000000002,"text":"One lower house lawmaker warned that the U-turn risked creating “an air of mistrust” around Takaichi, who has enjoyed historically high approval ratings."}],[{"start":138.25000000000003,"text":"Economists said the prime minister’s recent rhetoric reflected hope that the conflict in the Middle East would be resolved before the fiscal strain of subsidies became too great, and before high oil prices and commodity shortages hit economic growth."}],[{"start":153.70000000000002,"text":"But evidence of Japan’s vulnerability has been mounting, despite the country coming into the crisis with 250 days of crude stockpiles. Takaichi told the Japanese public that petrol prices would not rise above ¥170 per litre — a pledge that is now estimated to be costing the government around ¥42.6 a litre in subsidies. "}],[{"start":177.4,"text":"Japan has also been gripped by a supply shock for products that rely on naphtha, a key oil-derived feedstock used to make plastics, adhesives and paints."}],[{"start":187.25,"text":"But denials from Takaichi and her cabinet of the need for supply controls or changes to consumer behaviour have become more difficult to maintain, and companies facing higher prices or commodity shortages have begun to openly question her administration’s grip on the situation."}],[{"start":204.2,"text":"Snack makers have been forced to redesign crisp packets in black and white due to ink shortages, biscuit makers have suspended sales because of lack of access to packaging, and property developers have warned buyers about delaying moving dates because of disruption to building material supplies. "}],[{"start":222.45,"text":"Takaichi had “every incentive to downplay [the situation] and reject suggestions that things are really really urgent”, said Tobias Harris, a political analyst at Japan Foresight. “But there are sticky elements of this that cannot be wished away. There will be reality at some point.”"}],[{"start":239.6,"text":"Yoichi Funabashi, a think-tank head who has written extensively about crisis management in Japan, said that Takaichi had inherited a political culture built around “reassurance populism”, in which governments strived to shield the public from discomfort even at the cost of long-term problems."}],[{"start":256,"text":"This model “has prevented the government from transforming Japan into a realistic national security state”, he said. “Political leaders are reluctant to tell people about the risks and preparation necessary.”"}],[{"start":276.2,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1779095399_6777.mp3"}