Japan Eyes Earlier Achievement of Primary Budget Surplus
Tokyo, Jan. 13 (Jiji Press)--The Cabinet Office has drawn up an estimate that Japan would be able to achieve a primary budget surplus in fiscal 2026, one year earlier than previously estimated, sources said Thursday.
The government's tax revenue is forecast to exceed the previously projected level thanks to economic recovery resulting partly from massive stimulus measures.
In the previous estimate released in July last year, the Cabinet Office forecast that the primary surplus would be achieved in fiscal 2027. The new estimate will be submitted to the government's Council on Economic and Fiscal Policy at a meeting Friday.
A primary surplus refers to a situation in which the government can cover its expenditures other than debt-servicing costs without relying on new debt issuance.
The new estimate assumes that the Japanese economy will grow by at least 3 pct annually in nominal terms.
[Copyright The Jiji Press, Ltd.]