Japan FY '26 Debt-Servicing Costs Put at 29.8 T. Yen

Tokyo, Jan. 18 (Jiji Press)--The Japanese government's debt-servicing costs for fiscal 2026 are estimated at 29.8 trillion yen, up 4.5 trillion yen from the amount forecast for fiscal 2023 under the recently adopted draft budget.

The Finance Ministry took into account the recent rises in long-term interest rates when making the fiscal 2026 estimate, assuming a 10-year JGB yield of 1.6 pct for the year.

The estimate also assumes a nominal economic growth rate of 3 pct for each of the three years from fiscal 2024, higher than actual performances in recent years.

The estimate will be submitted to the Diet, the country's parliament, for deliberations on the fiscal 2023 draft budget as early as next week.

The draft budget is based on the assumption that 10-year JGB yields will stand at 1.1 pct in fiscal 2023. In the ministry's estimate, the assumed rate is 1.3 pct for fiscal 2024, 1.5 pct for fiscal 2025 and 1.6 pct for fiscal 2026.

[Copyright The Jiji Press, Ltd.]