Japan Govt Urged to Put Weight on Primary Budget Balance

Newsfrom Japan

Economy

Dec 3, 2025 10:35 (JST)

Tokyo, Dec. 3 (Jiji Press)–A key Japanese Ministry of Finance panel has urged the government to attach importance to the primary budget balance, in the run-up to the compilation of the state budget for fiscal 2026, which starts next April.

While the administration of Prime Minister Sanae Takaichi, which was launched in October, advocates aggressive fiscal spending to create a strong economy, the Fiscal System Council called on the government to conduct fiscal management by thoroughly examining the primary balance, an indicator of fiscal soundness, every fiscal year.

Submitting a set of proposals to Minister of Finance Satsuki Katayama on Tuesday, the council also called for utmost care to ensure that the government obtains confidence in its fiscal management from financial markets.

A primary surplus refers to a situation in which spending on policy measures is covered without new debt issuance.

The administration of former Prime Minister Shigeru Ishiba, the immediate predecessor of Takaichi, had set a goal of turning around the balance to surplus as soon as possible in fiscal 2025-2026.

[Copyright The Jiji Press, Ltd.]

Jiji Press