HOME > NATION > Article

Text Size

small

medium

large


Japan Keeps Budget Surplus Outlook despite Defense Boost

Japan Keeps Budget Surplus Outlook despite Defense Boost

   Tokyo, Jan. 24 (Jiji Press)--Japan's Cabinet Office on Tuesday maintained its projection of achieving a primary budget surplus in fiscal 2026 under an optimistic scenario, despite a planned massive increase in defense spending.
   The government agency included the projection in its medium- to long-term economic and fiscal forecasts submitted to the Council on Economic and Fiscal Policy, headed by Prime Minister Fumio Kishida.
   The government expects 43 trillion yen in total defense spending over the five years from fiscal 2023 as part of efforts to raise the size of its annual defense-related expenditures to 2 pct of gross domestic product.
   As in its previous forecasts released last July, the Cabinet Office said the country will be able to achieve a primary surplus in fiscal 2026 if the Japanese economy continues high growth of some 3 pct in nominal terms and 2 pct in inflation-adjusted real terms, citing measures to realize a new form of capitalism, a signature policy of Kishida.
   But the assumed economic growth rates are highly optimistic. Since fiscal 1995, the nominal rate exceeded 3 pct only in fiscal 2015.

To read a full story, please click here to find out how to subscribe.

NATION

HEADLINES

POLITICS
Pentagon Tracking Chinese Spy Balloon Flying over U.S. Mainland
ECONOMY
Bank of Yokohama Announces Plan to Acquire Kanagawa Bank through Tender Offer
SPORTS
Wheelchair Tennis Men: Japan Considering Giving Kunieda People's Honor Award
OTHER
Tokyo Reports 2,941 New Coronavirus Cases, Down Some 1,400 from Week Earlier

AFP-JIJI PRESS NEWS JOURNAL


Photos