The government plans to increase the additional expenditure to 19,176.1 billion yen this year in order to implement economic measures to support the prevention of infection with the new coronavirus and the transformation of the economic structure toward post-corona. Was decided.
In order to implement the economic measures summarized last week at the extraordinary cabinet meeting on the 15th, the government has decided on the third supplementary budget for this year, which includes 19,176.1 billion yen in the general account as additional expenditure.
Main measures
The budget for preventing the spread of the new coronavirus is
▽ 1,301.1 billion yen as the cost to increase the "emergency comprehensive support grant" to strengthen the system for providing medical care such as securing beds and accommodation facilities.
▽ Each prefecture has included 1.5 trillion yen as a financial resource for expanding "regional revitalization temporary grants" as financial resources such as cooperation funds when requesting restaurants to shorten business hours or take a leave of absence.
The budget for the transformation of the economic structure and the realization of a virtuous cycle toward post-corona is
▽ 1 trillion yen as the cost to subsidize up to 100 million yen for capital investment for business conversion by small and medium-sized enterprises. 148.5 billion yen
▽
178.8 billion yen
for the cost of unifying the system of local governments in order to promote the digitization of administrative services that are pointed out to be delayed ▽
Ambitious to establish a fund for the realization of a "decarbonized society" We have posted 2 trillion yen as an expense to continuously support companies that challenge innovation for 10 years.
Promote disaster prevention / mitigation and national resilience
As a budget for promoting disaster prevention / mitigation and national resilience,
▽
2,260.4
billion yen was included as expenses for measures against
intensifying storms and floods,
huge earthquakes, and measures for aging infrastructure.
New issuance of government bonds exceeds 100 trillion yen for the first time
On the other hand, due to the deterioration of corporate performance and sluggish consumption due to the impact of the new coronavirus, the national tax revenue for this fiscal year decreased by more than 8 trillion yen from the initial forecast to 55,125 billion yen.
This year, the total amount of the general account was about 102 trillion yen, but as a result of making the supplementary budget three times, the total amount of the general account has increased to about 175 trillion yen.
In order to secure the financial resources necessary for this supplementary budget, the government plans to issue additional deficit-financing bonds, etc., and the amount of new government bonds issued this year will be 112,553.9 billion yen, exceeding 100 trillion yen for the first time. Will be.
Looking at the overall budget for this year, it will be the worst situation ever to rely on government bonds for more than 64% of revenue.
Following the decision on the third supplementary budget on the 15th, the government will decide on the budget for next year next week and implement seamless measures in the form of a 15-month budget.
Changes in the amount of new government bond issuance
The amount of new government bond issuance was more than 7 trillion yen in fiscal 1990, 30 years ago.
After that, it continued to increase, and in the 2000s it was around 30 trillion yen.
By this time, 30% to 40% of the revenue was already dependent on government bonds, and fiscal consolidation was an issue.
In fiscal 2009, expenditures surged due to economic measures associated with the Lehman shock, and government bond issuance reached a record high of 51,955 billion yen.
After that, the pace of increase in government bonds was somewhat restrained by the increase in tax revenue accompanying the economic recovery, but the situation remained high at the 30 trillion yen to 40 trillion yen level.
Against this backdrop, three supplementary budgets were prepared this year as a countermeasure against the new coronavirus, while tax revenue fell by more than 8 trillion yen from the initial forecast due to the deterioration of corporate performance.
In order to cover huge expenditures, we were forced to issue a large amount of government bonds, and this year's issuance amounted to 112,553.9 billion yen.
It will more than double the record-high of 51,955 billion yen in fiscal 2009, and will exceed 100 trillion yen for the first time.
The ratio of government bonds to revenue actually exceeds 64%, which is the worst situation ever.
Next Focus Next year's budget challenges
The preparation of the 3rd supplementary budget for this year has been completed, and the next focus will be on the budget for the 3rd year of Reiwa, which is the final stage of the preparation work.
It will be more difficult than usual to make a budget while balancing the three issues of "preventing the spread of infection", "transforming the economic structure toward post-corona", and "financial soundness".
Prevention of infection spread
Recently, it has been pointed out that the number of newly infected persons and critically ill patients has exceeded the peak of the "second wave" in the summer and entered the "third wave".
Preventing the spread of infection is the most important issue not only for the lives of the people but also for supporting the economy and protecting employment and livelihoods.
There is a need for effective measures to prevent the medical system from becoming dysfunctional.
Transition of economic structure toward post-corona
In order to return the Japanese economy to a stable growth trajectory, it is necessary to transform society and the economy in a way that adapts to the consciousness of people who have changed with the new coronavirus.
The government's basic policy for budgeting next year is to improve productivity and continuously raise wages by supporting digital reforms, the realization of a green society represented by decarbonization, and business transformation of small and medium-sized enterprises. We have set out to realize a virtuous cycle.
The question is whether we can keep up with overseas and enhance our international competitiveness by responding to “new daily life”.
Fiscal consolidation
Budgeting with the challenge of sowing seeds for future growth and keeping an eye on the financial situation while preventing the spread of the infection.
Deputy Prime Minister and Finance Minister Aso "Surely a Private Demand-led Economic Recovery"
Deputy Prime Minister and Finance Minister Aso said at a press conference after the Cabinet decided on the third supplementary budget for this year, "I think it is my responsibility to overcome the crisis in Corona and connect the future. Economic measures We must do it quickly, overcome the disaster of Corona, strengthen future growth potential, and ensure a private-demand-led economic recovery. "
On the other hand, Deputy Prime Minister Aso said, "It is a fact that the current financial situation is deteriorating. Confidence is damaged." It is necessary to promote both economic revitalization and fiscal consolidation so that it will not happen. Also, because it is a difficult time, we must steadily tackle not only Corona but also the structural issues facing Japan. The most pressing problem is the declining birthrate and aging population. We must continue to make social security sustainable, "he emphasized the idea of promoting reforms in terms of both expenditure and revenue.