The Cabinet Office has compiled a trial calculation of the "primary balance," which is one of the indicators of fiscal soundness.
Based on recent achievements, assuming a growth rate that is closer to the actual situation, we expect a deficit of more than 6 trillion yen in 2025, which is the goal of the government to turn a profit.
The government has set a goal of fiscal consolidation, which is to bring the national and local governments into the black in 2025, which is an indicator of how much tax revenue can cover the expenses allocated to policies without relying on government bonds. It is listed.
The Cabinet Office made multiple estimates at the Council on Economic and Fiscal Policy on the 29th regarding this "primary balance."
Of these, in the case where the growth rate of nominal and nominal value continues to be about 0.5% based on the recent results of economic growth, a deficit of 6.2 trillion yen is expected in 2025 as well.
On the other hand, assuming that the company will continue to grow at a high rate of about 2% in real terms and about 3% in nominal terms, it is possible to achieve the target profitability of 2025 by continuing efforts to reform spending.
The government will begin full-scale preparation of the budget for next year, but in order to achieve the fiscal consolidation target, it is necessary to tackle two issues at the same time: spending reform and raising the growth rate.
Prime Minister Kishida “Strengthening growth potential to bring the primary balance into the black”
At the government's Council on Economic and Fiscal Policy, Prime Minister Kishida said that it would be "not easy" to achieve a surplus in 2025 with regard to "primary balance," which is one of the indicators of fiscal soundness. He emphasized the idea that it is necessary to thoroughly reform the government and strengthen its growth potential.
Among them, Prime Minister Kishida commented on the government's goal of turning the "primary balance" into the black in 2025. It is necessary to thoroughly implement such reforms and strengthen economic growth potential. "
He expressed his willingness to achieve economic growth that exceeds the level before Corona by focusing on startups and investment in people in order to achieve profitability.
In addition to ensuring efficient spending, he said, "We will pave the way for important issues such as drastic strengthening of defense capabilities and enhancement of children's policies." I did.