Japan's Cabinet on Friday decided to earmark 512 billion yen ($4.7 billion) of the fiscal 2021 reserve funds to purchase more COVID-19 vaccines as infections continue to increase in the country.

The outlay will be put toward securing 250 million doses in total from U.S. firms Pfizer Inc., Moderna Inc. and Novavax Inc. amid intensifying global competition for vaccines.

Prime Minister Yoshihide Suga said last week the government is in talks with Moderna and Novavax for 200 million doses of vaccine to be administered next year.

Of the total, Pfizer is expected to supply 50 million doses from July through September.

Relying on imports for its COVID-19 vaccine supply, Japan began inoculating seniors aged 65 or older, a group that accounts for nearly 30 percent of its population of 126 million, in mid-April after starting its campaign with health care workers in February.

Following the regulator's green light for the Pfizer shot in February, the Ministry of Health, Labor and Welfare is planning to begin formal procedures for approval of vaccines developed by Moderna and British drugmaker AstraZeneca Plc, making them the second and third available in Japan.

The government has set aside 5 trillion yen in reserve funds to deal with the pandemic under the 106.61 trillion yen initial budget for fiscal 2021 starting in April. Following Friday's Cabinet approval, 3.99 trillion yen remains.

In fiscal 2020, a total of 11.5 trillion yen was allocated in virus reserve funds under two extra budgets. Almost all was used, with just 508 billion yen left.

==Kyodo

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