Japan’s primary budget balance is expected to remain in the red in the fiscal year 2025/26 when policymakers had hoped to achieve a surplus, the Cabinet Office estimates showed, highlighting the stiff costs of servicing a record public debt.
The primary balance – a key measure of how much Japan’s national and local governments finance policy measures without relying on debt – was estimated at a deficit of 1.1 trillion yen ($7.44 billion), versus the previous forecast of 1.3 trillion yen shortfall seen in July.
