Japan Unlikely to See Budget Surplus until Fiscal 2029

Politics

Tokyo, Jan. 21 (Jiji Press)--Japan's Cabinet Office on Thursday maintained its estimate that the country will not achieve a primary budget surplus until fiscal 2029 even if the economy nominally grows 3 pct or more annually, far beyond the government goal of fiscal 2025.

A primary budget surplus means that a government can finance its spending on policy measures, except for debt-servicing costs, without issuing new debt.

The primary budget deficit is expected to reach 69.4 trillion yen in fiscal 2020, which ends March this year, and 40.1 trillion yen the following year due to massive coronavirus relief spending, the Cabinet Office said.

The agency predicts a gradual improvement in government finances on the back of economic recovery, but still expects a primary budget deficit of 7.3 trillion yen for fiscal 2025.

If economic growth is limited to around 1.0-1.5 pct, the country is expected to have a primary budget deficit of 10.3 trillion yen in fiscal 2030, the agency said.

[Copyright The Jiji Press, Ltd.]

Jiji Press