Gov't approves budget guidelines for fiscal 2013

Politics Aug. 18, 2012 - 06:40AM JST ( 3 )

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1

herefornowAug. 18, 2012 - 11:41AM JST

This fiscal year’s budget totals 90.3 trillion yen, including debt-servicing worth 22 trillion yen, with fresh borrowing accounting for nearly half of budget revenues.

I don't care who holds the debt, putting nearly 25% of the budget into debt servicing, with borrowing representing nearly 50% of revenue, is not sustainable. Japan has serious, serious financial issues, and the recent 5% increase in the consumption tax is only going to make a small dent in it.
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wtfjapanAug. 19, 2012 - 01:26AM JST

unless the consumption tax is risen too 30%+ or spending is cut by at least 20% then there isnt a chance in hell Japan will balance its budget by 2021. cutting the 5 trillion yen in subsidies given to the inefficient selfish farmers will be the first big step in cutting waste, the Jgov will declare bankruptcy before that will happen... economic reform in Japan is like the blind leading the blind with 500 people all giving directions at once.
0

Jimon AlegreAug. 19, 2012 - 05:21AM JST

Jgov knows what they are doing...If you just started focusing because of financial crisis, then you don't know Japan well...