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Edition: U.S. Article Comments (0) Full Focus Photos of the week Our top photos from the past week. Full Article Follow Reuters Facebook Twitter RSS YouTube Read Futures slump as debt talks result in no deal | 24 Jul 2011 Norway mass killer wants time in court to tell why | 1:26am EDT Stock futures, dollar fall on no debt deal 24 Jul 2011 No endgame in sight as debt default looms | 3:36am EDT Amy Winehouse family pleads for "privacy and space" | 12:26am EDT Discussed 200 Senate group offers $3.75 trillion deficit cuts 145 New plan offers hope for progress in debt talks 88 Big debt deal gains traction amid chaotic efforts Watched Clinton arrives in Hong Kong Sun, Jul 24 2011 Amy Winehouse body removed from London home. Sat, Jul 23 2011 Vigil for Norway victims Sun, Jul 24 2011 Japan OKs $25 billion for quake relief; more spending to follow Tweet Share this Email Print Related News Canon posts Q2 earnings fall, lifts forecast 2:38am EDT Dollar dips with debt ceiling talks deadlocked 2:09am EDT Asia watches and hopes U.S. will avoid debt "suicide" 1:52am EDT Analysis: United States gets closer to losing its AAA rating 12:38am EDT WRAPUP 10-US lawmakers still divided as debt deadline looms Sun, Jul 24 2011 Analysis & Opinion Obama vs. Boehner: Tax battle again plagues debt ceiling tax Debt ceiling update: What Wall Street thinks is happening Related Topics World » A landfill site of earthquake and tsunami debris is seen behind damaged cars at an area devastated by the March 11 disaster in Natori, north of Japan, May 21, 2011. Credit: Reuters/Kim Kyung-Hoon TOKYO | Mon Jul 25, 2011 3:28am EDT TOKYO (Reuters) - Japan's parliament approved on Monday a 2 trillion yen ($25 billion) extra budget for disaster relief after the March earthquake, paving the way for bigger reconstruction spending that is likely to involve new bond issuance and tax hikes to repay it. Prime Minister Naoto Kan, under fire for his handling of the nuclear crisis triggered by the magnitude 9.0 earthquake and tsunami, has cited the passage of the extra budget and two other key bills as conditions for keeping his promise to resign. Passage of the extra budget, the second of its kind, had widely been expected as it was not seen as a contentious issue, but a political impasse over the fate of the unpopular premier is threatening to delay compilation of a future reconstruction budget expected to exceed 10 trillion yen. With public debt already twice the size of the $5 trillion economy, the heavily indebted government has funded the second extra budget without new borrowing while tapping leftover funds from the previous fiscal year that ended in March. The second supplementary budget features steps to cope with the radiation crisis at Fukushima Daiichi plant, operated by Tokyo Electric Power Co, and help indebted individuals and businesses in the quake-hit areas secure new loans. It includes 7 billion yen set aside for a planned organization to handle compensation to victims once a relevant bill is passed by parliament. The government set up a framework in the extra budget to issue 2 trillion yen in special-purpose bonds to help finance the planned organization, and it earmarked 20 billion yen in the extra budget for interest payments. It also created government guarantees worth 2 trillion yen for the new organization. ($1 = 78.355 Japanese Yen) (Reporting by Tetsushi Kajimoto; Editing by Chris Gallagher) World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. 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