JGB Interest Payments Seen Growing to 21.6 T. Yen in FY '29

Tokyo, Feb. 18 (Jiji Press)--Annual interest payments on Japanese government bonds are projected to reach 21.6 trillion yen in fiscal 2029, about 70 pct more than the level estimated for fiscal 2026, government estimates have shown.

The rise reflects higher long-term interest rates, according to the Finance Ministry estimates based on the government's fiscal 2026 draft budget.

According to the estimates, the government's general-account spending is forecast to reach 139.7 trillion yen in the year starting in April 2029, compared with 122.3 trillion yen earmarked in the fiscal 2026 budget.

Debt-servicing expenses, or interest payments and principal repayments, are forecast to jump to 41.3 trillion yen from 31.3 trillion yen, accounting for nearly 30 pct of the overall spending, up from 26 pct.

Meanwhile, tax revenues are projected to rise to 95.5 trillion yen from 83.7 trillion yen. Japan is therefore seen posting a primary budget surplus of 4.7 trillion yen.

[Copyright The Jiji Press, Ltd.]