The Japanese government will fail to meet its target of limiting new bond issues below some 44 trillion yen a year, even if it realizes a planned consumption tax hike, a Finance Ministry estimate showed Monday.
The government’s new bond issues are estimated totaling 45.3 trillion yen in fiscal 2014 ending in March 2015 and 45.4 trillion yen in fiscal 2015 even if it raises the 5 pct consumption tax to 8 pct in April 2014 and to 10 pct in October 2015.
The ministry projected the government’s spending will increase by 11.1 trillion yen over the three years from 90.3 trillion yen in fiscal 2012, due chiefly to rising social security costs.
In the estimates, the ministry assumed that the country’s gross domestic product will grow around 1.5 pct annually in nominal terms. In fiscal 2010, nominal GDP rose 1.1 pct.