Forecast rises $18 billion for Japan’s deficit
Tokyo, Japan (AHN) – The official forecast for Japan’s annual budget shortfall has worsened and it could reach $280 billion by March 2020, an increase of $18.14 billion over earlier estimates.
Japan had originally announced plans to turn its budget deficit into a surplus by 2020.
News of the worsening deficit situation provides more impetus for government politicians who were already pushing for economic reforms and tax hikes to deal with the nation’s deficit.
Economic and Fiscal Policy minister Kaoru Yosano has warned that Japan must do something to turn the situation around or risk losing investor confidence. The national debt is about double the size of the economy.
Analysts say an aging population means more pressure on the government to provide costly social services, which will further drive up the deficit if nothing is done to contain it.
Observers say that will put pressure on the government to triple or even quadruple the nation’s 5 percent consumption tax.
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