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New JGB issuance is forecast to increase for the first time in 11 years in FY2021

2020-01-24T19:55:09.287Z

As social security expenditures such as medical care and pensions continue to grow, new issuance of government bonds, which are new debts of the country, will be in the next fiscal year and fiscal 2021…



New JGB issuance is projected to increase for the first time in 11 years in FY2021 Ministry of Finance estimates January 25 4:48

The Ministry of Finance estimates that the issuance of government bonds, which is a new debt of the country, is expected to increase for the first time in 11 years in the next fiscal year and 2021 as social security expenses such as medical care and pensions continue to grow. I understand.

The Ministry of Finance, based on the systems and policies included in the New Year's Budget, made a mechanical estimate of its impact on the country's budget going forward.

According to this, if economic growth of 1.5% continues at a nominal rate close to the current economic situation, social security expenditures will increase by 2.6 trillion yen from the new budget plan to 38 trillion in 2023, four years later. Billion yen, government debt for debt repayment is expected to increase by 3.1 trillion yen to 26.5 trillion yen.

As a result, the total amount of general accounts will increase by 4.9 trillion yen from the new fiscal year to 10.7 trillion yen.

The new issuance of government bonds, which are new debts of the government, has been reduced in the initial budget since FY2011 compared to the previous year due to the increase in tax revenue, but estimates show that it will be the first time in 11 years in the next fiscal year and FY2021. It is projected to increase, reaching 35.2 trillion yen in fiscal 2023, nearly 3 trillion yen higher than the new fiscal year.

Even if the government achieves a nominal economic growth of 3%, the issuance of new government bonds is expected to increase in FY2022, further highlighting that fiscal management will become more severe in the future. became.

Source: nhk

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