Japan FY2025

Japan seen missing primary budget surplus target in FY2025


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.

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