Japan likely to miss primary budget surplus target in FY2025

Japan likely to miss primary budget surplus target in FY2025

Last time it wasn't minus, it was in 1992

https://www.nli-research.co.jp/report/detail/id=55385?pno=3&site=nli

Japan will not be able to balance its primary budget even in fiscal 2033, the final year of the current projections.

In 2021, it was expected to be positive in 2027 but now even 2033 still won't be positive.

https://www3.nhk.or.jp/news/html/20210721/k10013152841000.html

What is the point of running a primary budget surplus?

JeffLeeToday  08:30 pm JST

What is the point of running a primary budget surplus?

If we follow your perspective why having taxes to start with? Why not finance all public expenses with debt?

What is the point of running a primary budget surplus?

To pay off existing debt, gain better terms for future debt, and fund rainy-day needs, like disaster relief equipment BEFORE it is needed?

OTOH, what do I know?

What countries actually have a budget surplus? The big ones certainly do not.

@Villanova,

Not to question you, but rather just to partially answer the question. Statistics do indeed seem to support your claim that major economies do not have a surplus.

https://www.statista.com/statistics/264710/countries-with-the-highest-public-surplus/

https://www.worldatlas.com/articles/countries-with-the-top-budget-surplus.html

@Rakuraku

Nice job of not answering my question. LOL. .

“why having taxes to start with?”

To redistribute wealth, control inflation and provide demand for the country’s currency. They’re not used to pay down debt. If Japan needed tax revenue to fund its huge amount of ever-expanding spending, its economy would have collapsed ages ago.

“To …gain better terms for future debt…”

Japan pays less than 1% interest to its “debt holders” on its 10-year JGB. I’d say those “terms” are pretty good. LOL.

Japan’s currency has plunged from sub-80 to the USD to 148… “LOL.”

But who needs a currency worth anything when you have toilet paper, right?

The primary balance -- tax revenues minus spending, except for debt-servicing costs -- is an indicator of fiscal health.

That’s right - even ignoring the huge debt mountain accumulated and associated debt-servicing costs - Japan still isn’t able to run a surplus in this half-baked “indicator”.

And how about that assumption of 3% nominal growth and 2% real growth - hullo, from where did they come up with that fantasy.