Japan's FY 2025 Primary Fiscal Deficit Put at 2.4 T. Yen
Tokyo, July 9 (Jiji Press)--Japan expects a primary budget deficit of 2.4 trillion yen in fiscal 2025, even if the country's economy grows by 3 pct or higher annually in nominal terms without adjustment with prices, a Cabinet Office estimate showed Monday.
The estimated deficit amount, which is 0.3 pct of the nation's nominal gross domestic product, under the "high growth" scenario is less than the previous projection of 3.8 trillion yen made in January this year, thanks to tax revenue growth.
The government agency submitted the deficit projection as part of its revised medium- to long-term fiscal estimates at a meeting of the Economic and Fiscal Policy Council the same day.
The red-ink forecast for the new target year for achieving a primary budget surplus suggests that the government needs to step up fiscal consolidation efforts, critics said.
The primary budget surplus means that government revenue, mostly tax income, exceeds policy spending, with debt financing and debt-servicing costs excluded.
[Copyright The Jiji Press, Ltd.]