Japanese Finance Minister Vows Budget Surplus by Fiscal Year 2025

Japan is set to issue government bonds worth 215 trillion yen ($1.89 trillion) in the upcoming fiscal year in a more stable manner through dialogue with the market, Japanese finance minister Shunichi Suzukisaid on Monday.

The country’s public finances are facing structural issues with aging population with imbalances between benefits and burdens in the social security system. Suzuki vowed in fiscal policy speech to bring primary budget surplus by the fiscal year 2025.

“As overall JGB issuance including rollover debt remains at a high level, we will try to issue JGBs stably based in close dialogue with the market,” Suzuki told a lower house plenary at the beginning of parliament’s regular sessions.

“Public finances are the cornerstone of the country’s confidence … We will proceed with reform on both the revenue and spending sides so as to achieve the fiscal 2025 primary surplus target without abandoning fiscal reform.”

Suzuki’s also said, the country is facing renewed spreading of COVID-19 due to Omicron variant which affected livelihood of Japanese people.

“There’s no crisis that Japan cannot overcome after getting over many difficulties … We must first overcome the current crisis, restore the economy and tackle fiscal reform so that we can hand the future to the next generation.”