Japanese PM Takaichi says will allocate will compile extra budget of more than JPY 3tln; to provide JPY 500bln from reserves for subsidies to curb utilities and gas bills from July to September

Budget will have no impact on bond markets as new debt will be offset by higher tax revenue and other factors. Will not increase bond issuance on a calendar basis; will issue new deficit financing bonds. Will raise ratio of nuclear and renewable energies from 30% to 70%. Finance Minister will unveil details of energy saving measures on Tuesday. Will establish a reserve fund for responding to the Middle East situation and other matters. Will call for energy saving as usual, but we are not in a stage of further saving that would put the brakes on economic activities.