Japan to Log Primary Budget Deficit of 20 T. Yen in FY 2021
Tokyo, Dec. 19 (Jiji Press)--The Japanese government is expected to incur a primary budget deficit of about 20,360 billion yen under its draft budget for fiscal 2021, it was learned Saturday.
The figure is more than double the level under the initial budget for fiscal 2020, which stood at 9,626.4 billion yen.
With government finances becoming worse due to the novel coronavirus crisis, Japan is unlikely to reach its goal of bringing the combined primary balance of the state and local governments to a surplus by fiscal 2025.
A primary budget surplus means that a government can finance its spending on policy measures, except for debt-serving costs, without issuing new debt.
The cabinet of Prime Minister Yoshihide Suga is expected to adopt the draft budget for fiscal 2021, which starts next April, on Monday. While the general account is seen ballooning to a record high of about 106,610 billion yen, tax revenue is estimated to stagnate at around 57,450 billion yen due to the coronavirus crisis.
[Copyright The Jiji Press, Ltd.]