Japan Projects to Balance Budget 2 Years Earlier
Tokyo, July 21 (Jiji Press)--The Cabinet Office presented an estimate on Wednesday that Japan will be able to balance its budget in fiscal 2027, two years earlier than the previous projection, under a scenario assuming more than 3 pct nominal economic growth.
Still, the government will fall short of its goal of bringing the primary budget balance for the central and local governments to a surplus in fiscal 2025, according to the new projection.
The Cabinet Office submitted the projection to a meeting of the government's Council on Economic and Fiscal Policy, chaired by Prime Minister Yoshihide Suga.
A primary budget surplus means that the government can finance its spending on policy measures, except for debt-serving costs, without issuing new debt.
In fiscal 2020, Japan's budget deficit increased sharply due to a range of measures to address the novel coronavirus epidemic, but national tax revenue was about 5.7 trillion yen higher than previously estimated.
[Copyright The Jiji Press, Ltd.]