Kishida government approves additional spending budget of 29.1 trillion yen, adding new burden to Japan’s debt
Financial Associated Press, November 8 (editor Zhou Ziyi)According to the Ministry of Finance of Japan, in order to finance the economic stimulus plan and support the increase in internal salaries, the cabinet of Japanese Prime Minister Fumio Kishida approved on Tuesday the second supplementary budget for this fiscal year, with additional spending. total of 29.1 trillion yen (equivalent to 198.54 billion US dollars).
On Tuesday, the Japanese government decided on the second supplementary budget for 2022. After partial deductions, the total spending of the general government budget was adjusted to 28.92 trillion yen (197.7 billion dollars).
In the new additional spending budget, 7,817 trillion yen (nearly a quarter) will be used to cope with rising price pressures, including promoting price relief, adopting measures such as electricity subsidies and gasoline and the encouragement of companies to raise wages.
In addition, the 5.49 trillion yen budget will be used to distribute wealth more widely and promote Kishida’s vision of “new capitalism”; 7.54 trillion yen will be used to improve disaster resilience and ensure a safe environment for citizens; and some The budget is used as a reserve for emergencies such as the New Crown epidemic and the Russian-Ukrainian conflict.
budget source
As for the source of the additional budget, 3.12 trillion yen will come from tax revenue in fiscal year 22/23; 2.27 trillion will come from the remaining budget in 21 and 0.673 trillion will come from the extra-tax revenue. These sources of money make up only 20% of the budget.
Another 80% of the bulk, about 22.85 trillion yen, will be resolved by issuing new government bonds.
A few days ago, it was reported that Japan’s tax revenue forecast for fiscal year 2022/23 was raised to a record 68.36 trillion yen, which will set a new record for three consecutive years.
The Kishida government “could raise taxes on the super rich who earn more than 1 billion yen ($ 6.8 million) a year,” according to the head of Japan’s Komeito tax group on Tuesday.
Furthermore, some media have commented that the extent of this measure is rare, butno doubt it will further increase Japan’s debt burden。
Data shows that Japan’s new bond issue in fiscal year 2022/23 was revised up to 62.48 trillion yen, a 70% increase from the original issuance plan.
However, some analysts believe Fumio Kishida’s move is to increase his support rate by easing cost pressures; at the same time, it allows the Bank of Japan to maintain extremely low interest rates for a longer period of time.
