Japan FY2022 draft budget’s spending to hit record $946 billion
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TOKYO (Reuters), Japan’s next fiscal-year budget will most likely exceed a record $946billion because of rising social welfare and defense costs.
According to Kyodo, the huge spending would come as a result of a substantial pandemic-relief package, which was paid for by this year’s supplementary budget. This could lead to an increase debt issuance.
Kyodo indicated that it is likely the government would finalize in December the budget for fiscal year 2022-23 and have it passed through parliament before March.
Kyodo announced that out of the total expenditure amounting to 107 trillion-yen ($946billion), defense spending will rise to roughly 5.4 trillion yen. This is due in part, Kyodo explained, to Prime Minister Fumio Kishhida’s commitment towards national security.
Due to Japan’s recovery following the COVID-19 pandemic in 2004, tax revenues will exceed 60 trillion Japanese yen. This is an increase of 57.4 trillion expected for the current fiscal year.
This would still leave government with short-falls that would force it to issue more debt, according to the agency, which cited unidentified sources from government.
($1 = 113.1200 yen)
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