The Ministry of Finance has predicted that the national burden rate, which indicates the share of taxes and social insurance premiums in the income of individuals and companies, is expected to be 46.1% for this fiscal year, 2023, which is more than 2 percentage points lower than the previous year. Announced.
The ``national burden rate'' is an index used for international comparisons that measures the proportion of taxes and social insurance premiums to the income of the entire nation, including individuals and businesses.
The Ministry of Finance announced on the 9th that the national burden rate for this fiscal year is expected to be 46.1%.
This was down 2.3 points from the previous fiscal year, FY2022, which was the highest ever, due to factors such as a recovery in corporate performance and an increase in employee compensation.
However, when looking at the ``potential national burden rate'' including the fiscal deficit, it is 54.6%, which is -0.1 point compared to the previous fiscal year, and the level of the burden has hardly changed.
This is due to the increase in the fiscal deficit due to the issuance of additional national bonds in the 13 trillion yen supplementary budget compiled last fall.
On the other hand, the national burden rate for the new fiscal year, 2024, is expected to be 45.1%, 1 point lower than this year, as a fixed tax reduction will be implemented from June this year.
Japan's national burden rate was 34.1% in 2003, 20 years ago, but it has remained above 40% since 2013 due to factors such as an increase in the burden of social insurance premiums due to the aging of the population.