TOKYO (Reuters) -Japan’s government debt will top 1,100 trillion yen ($8.47 trillion) for the first time at the fiscal year end in March 2027 as the country remains heavily dependent on borrowing, a draft estimate seen by Reuters on Thursday showed.
Even assuming a rosy scenario in which the world’s third-largest economy grows an annual 3% in nominal terms, the debt would continue to grow to just shy of 1,200 trillion yen at the end of the forecast period ending in March 2033, it showed.
Reflecting snowballing debt, interest payments would nearly double from 8.6 trillion yen for fiscal 2023 to 17.1 trillion yen by the end of the forecast period.
The government will present the estimate to parliament as reference for lawmakers’ debates on next fiscal year’s budget.
The Ministry of Finance, in separate projections issued earlier this month, said it could keep new bond issuance at some 32 trillion yen in the next few years.
Rounds of COVID-19 stimulus spending have helped boost rolling-over bonds to 150 trillion yen, which will come down to 130 trillion yen in fiscal 2024, the projections showed.
(Writing by Tetsushi Kajimoto; Editing by Frank Jack Daniel and Kim Coghill)
Copyright 2023 Thomson Reuters.
Source link
