Over ¥ 66 trillion in deficit of “basic fiscal balance” Supplementary budget for corona twice June 1 17:23
The Ministry of Finance revealed that the basic fund balance deficit for the current fiscal year will expand significantly from the previous forecast to more than 66 trillion yen by compiling the supplementary budget twice after receiving the new coronavirus Did. This is because the financial resources will be covered by the additional issuance of government bonds, which is a new debt.
The "basic fiscal balance" is one of the indicators to measure the financial soundness, and shows how much tax revenue can cover the financial resources for the policy without relying on debt such as government bonds.
The Treasury released the latest figures at a subcommittee of the Finance Minister's Advisory Board and the Financial System Council held on the 1st.
According to this, the deficit of the "basic fiscal balance" for this fiscal year will expand from the previous forecast of 9.2 trillion yen to 66 trillion 100 billion yen.
This is because the government bond issuance will be used to finance the additional expenditure of the supplementary budget that has been created twice in order to respond to the spread of the new coronavirus.
The attending committee members pointed out that "we should pay attention to whether the budget is being used effectively" and that "after the convergence, we should work on mid- to long-term fiscal consolidation."
The government has set a goal of making the basic fiscal balance into the black in FY 2025, but due to the large-scale financial expenditures, it is difficult to achieve this.
At the press conference, Deputy Chairman Hiroya Masuda of the subcommittee said, "We should discuss the goals for the time to achieve profitability by looking at the future situation of the new coronavirus."