Japan’s National Debt Hits ¥1.3 Quadrillion Due to Soaring Pandemic Prices

As of March 31, 2023, Japan’s national debt, which is the sum of the outstanding balance of government bonds, loans, and financing bills, reached a new record high at ¥1,270 trillion. Compared to March 2022, there was an increase of ¥29.2 trillion, mainly due to fiscal stimulus measures implemented in response to the COVID-19 pandemic and inflation-driven price rises. This is the seventh consecutive year that debt has risen to its highest level yet.

A calculation based on the estimated Japanese population of 122 million (as of November 1, 2022) shows that per-capita debt for all citizens, from newborn babies to centenarians, was more than ¥10.4 million. Last year marked the first time per-capita debt exceeded ¥10 million and it has now increased further.

The main increase in debt was due to a year-on-year rise in the issuance of government bonds, which account for the bulk of the debt, by ¥31.7 trillion to ¥1,136 trillion. Japan’s outstanding balance of general bonds that needs to be repaid through taxes also rose to ¥1,028 trillion.

(Translated from Japanese. Banner photo © Pixta.)