Japan FY 2020 Extra Budgets "Biggest Postwar Anomaly": Panel

Politics

Tokyo, Dec. 3 (Jiji Press)--A panel advising Japan's finance minister stressed on Friday the importance of normalizing the country's economic and fiscal conditions, saying that huge fiscal spending in fiscal 2020 aimed at tackling the novel coronavirus pandemic was "the biggest anomaly in the post-World War II period."

The Japanese government expanded its spending in fiscal 2020, which ended in March this year, by adding 73 trillion yen in three supplementary budgets to fight against the virus crisis.

The Fiscal System Council made the point in a set of proposals regarding the government's coming work to draft its budget for fiscal 2022, which starts next April. The proposals were submitted to Finance Minister Shunichi Suzuki on the day.

The council suggested that Japan faces three risks--natural disasters such as earthquakes, infectious diseases and a rise in interest rates reflecting overseas central banks' moves to taper their monetary easing.

"It is essential for Japan to secure extra financial capacity to deal with possible crises," it said.

[Copyright The Jiji Press, Ltd.]

Jiji Press