Japan's FY 2020 Budget Likely to Hit Record High
Newsfrom JapanPolitics Lifestyle
Tokyo, Dec. 9 (Jiji Press)-- The Japanese government's general-account budget for fiscal 2020 is expected to hit a record high, topping the 101,457.1 billion yen for fiscal 2019, due to increases in social security expenses and defense costs, it was learned Monday.
The state budget is on course to exceed 100 trillion yen for the second straight year.
Defense costs are highly likely to surpass the record 5,257.4 billion yen earmarked under the 2019 budget, because outlays for projects related to the development of new areas, such as space, are seen ballooning, informed sources said.
A natural increase in social security costs reflecting the aging of population is now projected to reach 530 billion yen. The Health, Labor and Welfare Ministry and the Finance Ministry are considering reform measures to curb such costs. Still, population aging-related growth in social security costs is seen topping 400 billion yen, the sources said.
In addition, a program to make nursery and kindergarten services free of charge, which started in line with the consumption tax hike from 8 pct to 10 pct in October, is set to fully weigh on the state finances in fiscal 2020.
[Copyright The Jiji Press, Ltd.]