Japan keeps budget goal intact for now but aims to reassess it later



* Govt pledges to achieve primary budget surplus in FY2025/26

* Blueprint also calls for reassessing target by this FY-end

* Suga aims for post-pandemic economic growth and fiscal reform

By Tetsushi Kajimoto

TOKYO, June 18 (Reuters) - Japan's government pledged on Friday to keep its goal of achieving a primary budget surplus by fiscal 2025, with a caveat that the target will be reassessed this fiscal year due to COVID-19 pandemic, leaving room for a possible delay in fiscal reform.

The first annual economic policy blueprint under Prime Minister Yoshihide Suga underscored the need to strike a delicate balance between spurring post-pandemic growth and curbing the industrial world's heaviest public debt burden.

There was no change in the blueprint to its wording on the fiscal target from an earlier draft, in which the government said it would "aim to bring the primary balance into a surplus by fiscal 2025 while stably lowering the debt-to-GDP ratio.

"However, we will reassess the timeframe by the end of the current fiscal year, while considering the still unstable economic and fiscal situation due to the pandemic's impact," read the blueprint, which was approved by the cabinet on Friday.

The blueprints provide a basis for the next fiscal year's budget. Last year, it dropped the reference to the timeframe for the first time, as Japan had rolled out huge spending packages to ease the pain from the pandemic.

"It's true the situation is severe" for Japan to meet its primary budget surplus in fiscal 2025, Finance Minister Taro Aso told reporters after the cabinet approved the blueprint.

Still, "we will strive to achieve both economic growth and fiscal reform," he said.

The government's plan leaves some wiggle room in the budget timeframe as it comes under pressure from some ruling party lawmakers seeking even bigger spending and as the country's economic recovery remains fragile.

"It's difficult to achieve a primary budget surplus in fiscal 2025, as coronavirus impacts linger in public finances while pressure will mount on boosting green-related spending," said Takuya Hoshino, economist at Dai-ichi Life Research Institute.

The blueprint cited green, digital, local regions and childcare as key areas of investment to drive growth in the post-coronavirus era.

"Japan could debate corporate tax hike to meet necessary fiscal demand for greener society, following the footsteps of Britain and the united States," Hoshino said.

Having pushed back the target a few times, Japan has pledged to meet a primary budget surplus, which excludes new bond sales and debt servicing costs, by the fiscal year-end in March 2026.
Reporting by Tetsushi Kajimoto; Editing by Kim Coghill

Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.

Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.

Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.

Gumagamit kami ng cookies para mabigyan ka ng mahusay na karanasan sa aming website. Magbasa pa o palitan ang iyong cookie settings.

Babala sa Risk: Ang iyong kapital ay maaaring malugi. Ang mga produktong naka-leverage ay maaaring hindi para sa lahat. Tingnan ang aming Risk Disclosure.