財政ざいせい審しん 基礎きそ的てき財政ざいせい収支しゅうしの黒字くろじ化か “来年度らいねんどにかけ早期そうきに”

The Fiscal System Council, an advisory body to the Minister of Finance, has compiled recommendations for this years Basic Policy, stating that the goal of fiscal consolidation—achieving a primary balance surplus—should be pursued as early as possible, ideally from this fiscal year to the next.

The Fiscal System Council, an advisory body to the Minister of Finance, has compiled and submitted recommendations for the Basic Policy on Economic and Fiscal Management and Reform, commonly known as the Honebuto Policy, which the government is expected to decide as early as June.

The recommendation pointed out that, in light of measures such as U.S. tariffs, the world has entered a turbulent era, and emphasized the urgent need to secure fiscal capacity to prepare for external shocks, while achieving sustainable economic growth to overcome difficult situations.

On top of that, regarding the goal of fiscal soundness, it states that the primary balance, which indicates how much of policy-related expenditures can be covered by tax revenue and other sources, should be aimed to achieve a surplus as early as possible, ideally between this fiscal year and next.

Given that achieving a surplus this fiscal year has become difficult, the timing of the target has been made more flexible.

And, while ensuring a certain level of surplus with achieving profitability as a milestone, the ratio of debt outstanding to GDP Gross Domestic Product should first be steadily reduced to the pre-COVID-19 level by fiscal 2030.

Masuda Hiroya, Deputy Chairman of the Subcommittee, said, We should reflect this in the Basic Policy and other guidelines. At a press conference, Masuda Hiroya, Deputy Chairman of the Fiscal System Councils Subcommittee, stated, We must not lower the flag of fiscal soundness and must absolutely achieve a primary balance surplus.

We are now at the stage where we will discuss the extent of that profit.

I would like the government to definitely reflect this in the Basic Policies and other measures, and work on expenditure reforms, he said.

On top of that, Ahead of the House of Councillors election, there is a tendency for each political party to include measures involving fiscal spending, but at the same time, a survey shows that the public is also interested in where the funding for those measures will come from.

The Fiscal System Council stated, We would like to honestly express our views on the current state of Japans public finances.