Japanese Cabinet backs tsunami relief budget

Japan’s prime minister Yoshihiko Noda’s cabinet has approved a 12.1 trillion yen (€114bn) extra budget to help fund the reconstruction of Japan’s tsunami-battered north east.

The supplementary budget for the year through to March approved today also earmarks about two trillion yen in measures aimed at easing pressure from the yen’s recent surge, which erodes exporters’ earnings.

The government is planning to sell special reconstruction bonds to raise the bulk of the funds.

The budget bill is subject to approval in parliament.