Abandoning Target of Primary Balance
Prime Minister Sanae Takaichi announced at Committee on Budget in the House of Representatives on November 7 th that she would revise the target of primary balance of national budget from annual one to multiple years. It will make easier for the government to issue governmental bonds (GB), which balance is already at the worst level among developed countries. It is concerned that fiscal discipline of Japan will be further deteriorated. Primary balance indicates how national budget is healthy. It is drawn by deducting spendings except redemption for GB from revenue except income through issuing new GB. It means how national budget can be maintained without relying on debt. It was former prime minister Jun-ichiro Koizumi, being serious about fiscal healthiness as setting limitation of issuing new GB at annual 30 trillion yen, who set the target of achieving that surplus in early 2010s in 2002. The target became FY2011 in 2006, which was not im...