Japan to Push Back Target to Achieve Primary Budget Surplus

   Tokyo, June 3 (Jiji Press)--The Japanese government will effectively push back its target of achieving a primary budget surplus to fiscal 2025-2026, it was learned Tuesday.
   The existing target, adopted since fiscal 2018, calls for turning the primary balance at the central and local governments into a surplus in fiscal 2025. The new target will be included in a draft of the government's upcoming economic and fiscal policy guidelines.
   The draft says the government will reassess the target if necessary, given the uncertainties over the impact of U.S. President Donald Trump's tariff policy on Japan's economy and public finances.
   With possible fiscal spending to tackle fallouts from the tariffs and rising prices in mind, the draft says that the primary surplus target should not restrict macroeconomic policy options.
   It also points to a need to work on domestic efforts to increase Japanese government bond holdings in order to avoid a further rise in long-term interest rates, with the country making a transition to a world with interest rates.

(2025/06/03-22:47)

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