Japanese Prime Minister Fumio Kishida left open on Friday the possibility that the government will review the target of bringing the primary budget balance for the central and local governments to a surplus by fiscal 2025.
“We’ll reconfirm and examine” the target, Kishida said in a group interview with media organizations including Jiji Press at the prime minister’s office.
At a time when planned fiscal spending on the government’s economic stimulus package is set to hit a record high, Kishida’s comment indicated that he will prioritize novel coronavirus measures and economic recovery over fiscal discipline.
A primary budget surplus means that a government can finance its spending on policy measures, except for debt-servicing costs, without issuing new debt.
Kishida denied the possibility of raising the consumption tax rate for fiscal reconstruction, saying that the government is “not thinking” about changing the consumption tax.