Japan Govt Regular Budget to Top 100 T. Yen for 1st Time

Politics

Tokyo, Dec. 3 (Jiji Press)--The Japanese government's regular budget is projected to top 100 trillion yen for the first time for fiscal 2019 from next April, informed sources said Monday.

The fiscal 2019 budget look certain to increase by over 2 pct from the 97.7 trillion yen under the fiscal 2018 initial budget, due mainly to costs for measures to cushion the impact of the consumption tax increase in October next year as well as surging social security costs amid the country's aging population.

The measures to ease the tax hike impact include a reduced tax rate mainly on food and a reward points program for cashless shopping mainly at small retailers.

The government plans to use additional revenues from the tax hike partly to support child-rearing families, such as a program to make preschool education and care services basically free of charge.

In line with growth in the number of elderly people, the country's social security costs in fiscal 2019 are seen increasing by some 500 billion yen from the previous year.

[Copyright The Jiji Press, Ltd.]

Jiji Press