TOKYO: Japan’s government wants to cut its budget for the first time in 12 years next fiscal year. This shows how worried people are about the country’s huge public debt, as seen in a draft of the 2024-25 budget seen by Reuters.
The budget is expected to be 112.1 trillion yen ($782 billion), which is less than the initial 114.4 trillion yen set out in this fiscal year’s budget. This shows that the government wants to fix the broken public finances and get the economy going again.
The draft showed that tax income is expected to reach 69.6 trillion yen, which is a little more than this year’s estimate. This will help keep the issue of Japanese government bonds (JGBs) next fiscal year relatively low, at about 34.9 trillion yen.
Officials from the Finance Ministry could not be reached right away for comment. On Friday, the budget plan will be put together. It will then be sent to parliament to be discussed and approved before the start of the next fiscal year in April.