METI’s Outline of the FY2024 Supplementary Budget Proposal

The Ministry of Economy, Trade and Industry (METI) has published its outline of the FY 2024 Supplementary Budget Proposal, which indicates continued government support for startups, particularly in deep tech and those with global aspirations.

There are also potential indirect benefits from funding allocated to broader digitalization and advanced technology areas. FinTech companies should pay close attention to the intersections of their technology with areas like AI, blockchain, and digitalization, where government funding might create relevant opportunities.

The following is a summary of the key spending areas.

1. Growth of the Japanese and Regional Economies [¥2.8 trillion]

1.1 Development of a Wage Increase Environment [¥511.4 billion]

• Support for improving productivity in SMEs
• Support for growth investment in mid-sized and SMEs

1.2 Development of New Regional Revitalization Policies [¥73.6 billion]

• Addressing regional mobility issues and improving logistics efficiency, including measures for shoppers facing difficulties accessing stores
• Promotion of the Osaka-Kansai Expo

1.3 Realization of an Investment-Based Nation [¥2.2614 trillion]

• Promoting digital investments such as semiconductors and AI, and GX investments such as renewable energy and storage batteries
• Promoting investment in growth fields such as quantum technology, space, biotechnology, elderly care, and medical care
• Startup support
• Securing and stabilizing the supply of critical minerals such as copper and rare metals

2. Overcoming Price Increases [approx. ¥1.6 trillion]

2.1 Detailed Measures to Address Current Price Increases [¥1.3518 trillion]

• Measures to mitigate drastic fluctuations in fuel oil prices, support for reducing electricity and gas charges

2.2 Realizing Economic Measures Resilient to Energy Cost Increases [¥272.4 billion]

• Support for promoting energy-saving investments
• Promotion of clean energy vehicles

3. Ensuring National Safety and Security, including National Resilience and Disaster Prevention & Mitigation

3.1 Restoration and Reconstruction from Natural Disasters [¥67.9 billion] [approx. ¥180 billion]

• Measures related to decommissioning of Fukushima Daiichi Nuclear Power Plant and addressing reputational damage from treated water, support for reconstruction after the Noto Peninsula Earthquake

3.2 Promotion of Disaster Prevention/Mitigation and National Resilience [¥19.4 billion]

3.3 Response to Changes in the Diplomatic and Security Environment [¥95.5 billion]

4. Specific Initiatives

Detailed explanations of many of these items are provided in the latter parts of the document, offering specific program names and further breakdowns of funding allocations. These details include specifics on:

• Support for specific industries: Semiconductors, AI, quantum computing, space, biotechnology, elderly care, medical care, renewable energy, CCS, hydrogen, critical minerals, and traditional crafts
• Addressing specific challenges: Labor shortages, logistics efficiency, supply chain resilience, energy price volatility, and disaster recovery
• International collaborations: Working with international organizations like ERIA and IEA on energy transition
• Support for specific demographics: SMEs, startups, and affected communities after natural disasters

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