Japan's government is set to craft a first extra budget for this fiscal year to next March worth 2.7 trillion yen ($20.9 billion), featuring steps to cope with surging oil prices and to be funded with deficit-covering bond issues, a draft seen by Reuters showed.

The extra budget will be approved by the cabinet on Tuesday.

The government plans to spend 1.17 trillion yen on steps to cope with rising oil prices such as subsidy to gasoline wholesalers and 1.52 trillion yen for budget reserves, it showed.

 

($1 = 129.3800 yen)

(Reporting by Takaya Yamaguchi; writing by Tetsushi Kajimoto; Editing by Toby Chopra)