Japan is preparing to announce a supplementary budget that will include funding from fresh government debt, according to a source familiar with the matter.

The extra budget announcement is expected to come amid ongoing economic pressures, including impacts from Middle East developments that have created market volatility and economic uncertainty.

The decision to include new debt financing indicates the government's willingness to increase borrowing to fund additional spending measures. Japan already maintains one of the world's highest debt-to-GDP ratios among developed nations.

Details about the size of the supplementary budget and specific spending allocations have not been disclosed. The timing of the announcement and implementation timeline also remain unclear.

Supplementary budgets are typically used by the Japanese government to address urgent economic needs or respond to unforeseen circumstances that arise after the regular annual budget has been approved.