Japan to meet fiscal 2015 deficit targets; longer-term goals in doubt

due to a spending cap and a sales tax increase

Sure they will. That's like saying you'll promise to start saving money and paying off your credit cards WITHIN THREE YEARS because you expect to get a raise.

Politicians NEVER cut spending like they say they will, and taxes NEVER amount to as much as they hope they will.

Case in point: California recently made some budget predictions based on the expected value of FACEBOOK.

Seriously.

That big clanging sound you hear is those political goofs trying to kick a huge, immovable can down the road.

Thats a good notice to listen to.

Its really hard to cut your budget. Many people cry.

So what? When you set the bar low enough it is easy to hit your target. But they are only HALVING the primary budget deficit, not eliminating it. Which still means they can't cover even current expenses, not including debt servicing costs, without more borrowing. Not a rosy picture.

But they are only HALVING the primary budget deficit - and that is just the deficit not the principal meaning they will still have the other half still as every years loss so the debt is still growing but only by half as much....and the people pay for it so we will have less and less so the sales tax total revenue won't mean anything as the people have less to spend the total revenue will become less....

I wonder if, when they calculated that extra 5.7% consumption tax needed to cover the deficit, they accounted for the DROP in consumer spending that will result from higher sales tax. As gaijinfo notes above, they are making promises on risky...and likely false revenue assumptions.

Boy oh boy what a load of BS this blurb is.

And the increase in consumption tax will go to pensions etc.........yeah MORE B$!

I dont know how much longer this house of cards is going to last

herefornow Sep. 02, 2012 - 11:37AM JST

So what? When you set the bar low enough it is easy to hit your target. But they are only HALVING the primary budget deficit, not eliminating it. Which still means they can't cover even current expenses, not including debt servicing costs, without more borrowing. Not a rosy picture.

My thoughts exactly. And just the fact they are talking about the so-called "primary" budget is an insult to a third-grader's intelligence.

It is a start but social change is needed. Like letting people work past 60 and not being downgraded. Raising the retirement age to 70 or 75. Yes it is tough but we are not Greeks.

Like letting people work past 60 and not being downgraded.

lol what, Japanese people already work overtime.

How to make Japan more competitive? Need to make it really easy to raise kids in Japan to increase the population. There is no serious effort. There should be way more bay sitting services or place to put the kids while the parents work. Should be more economic benefits if you have kids. The English learning systems to be destroyed and recreated as its not working. Basically the only country where people laugh when they try and speak English as if they dont take it seriously. Last, woman need to be encouraged to work harder in the workforce and work their way up in the ranks. Many choose not to work but their participation will be like adding a few million to the shrinking workforce.

avenger

Agree on more creches but on the same token that also removes valuable family time.

Also can't name another country where pre-schoolers get 100% free medical, 80% coverage till highschool and monthly money to help them raise.

Japan is not perfect but they do have a lot of incentives for raising kids. I get about 50.000Yen/month being a single Dad.