Japan to review budget balance timing early next year -PM Kishida
Reuters
Published Dec 06, 2021 11:07PM ET
TOKYO (Reuters) - Japan will review the timeframe early next year for its target of balancing the budget, Prime Minister Fumio Kishida said on Tuesday, brushing aside prospects that it could ditch the goal to further boost spending.
The government unveiled a record $490 billion spending package last month to support a fragile economy, bucking a global trend towards withdrawing crisis-mode stimulus measures.
But Kishida remains under pressure from influential advocates of big spending within his ruling Liberal Democratic Party (LDP), some of whom have called for ditching a government target to balance the budget.
In a move aimed at countering such calls, proponents of fiscal reform, including former finance minister Taro Aso, created on Tuesday a new LDP panel to discuss steps to put Japan's fiscal house in order.
"Taking steps to deal with the pandemic and restoring Japan's fiscal health are compatible," Kishida told the panel, adding that sound fiscal policy was the "bedrock" for Japan.
The government will begin early next year debate on whether the current timeframe for hitting the budget target was feasible, Kishida added.
As part of efforts to rein in its huge public debt, for years Japan has set a timeframe for bringing the primary budget, excluding new bond sales and debt servicing costs, back to a surplus in its annual fiscal blueprint.
After pushing back the timeframe several times, the most recent pledge was to achieve a primary balance surplus by fiscal 2025 - with a caveat that the target will be reassessed given the economic pain caused by the COVID-19 pandemic.
Kishida has repeatedly said while the government's near-term focus would be to boost spending to combat the pandemic, Japan must lay out a long-term plan to fix its tattered finances.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.