print PRINT

ECONOMY > Finance

Japan govt debts hit record 1,255 t. yen

  • August 10, 2022
  • , Jiji Press , 8:34 p.m.
  • English Press

Tokyo, Aug. 10 (Jiji Press)–The balance of Japan’s central government debts hit a record high of 1,255,193.2 billion yen as of the end of June, the Finance Ministry said Wednesday.

 

The per capita amount is 10.05 million yen, based on the country’s estimated population of 124.84 million as of July 1.

 

The severe fiscal situation continues, reflecting massive expenditures for COVID-19 measures and ballooning social security costs due to the aging population.

 

The total balance of debts, or the combined amount of government bonds and financing bills issued plus borrowings, rose 13,885.7 billion yen from the end of March.

 

The balance of financing bills grew 24,299.9 billion yen to 110,498.8 billion yen, while general bonds fell 7,075.9 billion yen to 984,335.3 billion yen.

 

“Zaito” bonds to finance projects under the government’s fiscal investment and loan program dropped 1,560.6 billion yen to 103,063.5 billion yen.

 

The balance of the central government’s long-term debts, which exclude zaito bonds and financing bills and must be repaid with taxpayer funds, totaled 1,010,424.6 billion yen at the end of June.

 

The total balance of long-term national debts, including local government debts, is estimated at 1,247 trillion yen at the March end of fiscal 2022.

 

While there are growing calls for an increase in defense and decarbonization-related expenditures ahead of the fiscal 2023 budget compilation, it is unclear how to secure financial resources for the expansion.

 

If the Bank of Japan ends its monetary easing policy and raises interest rates, as many other central banks have done, the government would be hit by an increase in the cost of paying interest on government bonds.

  • Ambassador
  • Ukraine
  • OPINION POLLS
  • COVID-19
  • Trending Japan