Japan Govt to Scrap Single-Year Primary Surplus Goal

Tokyo, Dec. 25 (Jiji Press)--The Japanese government plans to scrap its target of turning the primary budget balance at the central and local governments into a surplus in a specific fiscal year.

At a meeting Thursday of the Council on Economic and Fiscal Policy, headed by Prime Minister Sanae Takaichi, members from the private sector supported the envisaged abolition of the current method and instead called on the government to check the primary balance over several fiscal years.

At the meeting, council members discussed issues related to the government’s basic guidelines on economic and fiscal policy management, which are expected to be drawn up next summer.

Takaichi instructed participating ministers to “lead the talks” on the compilation of the guidelines, emphasizing her determination to “steadily implement economic and fiscal policies to create a strong economy under (my administration’s slogan of) responsible and proactive public finances.”

The primary budget balance is an indicator for a nation’s fiscal health. A primary surplus means a situation in which expenditures on policy measures, such as social security and public works projects, are covered with tax and other revenues without relying on revenue from debt issuance.

[Copyright The Jiji Press, Ltd.]