Third supplementary budget plan Can it lead to a recovery of the real economy in the midst of financial deterioration? November 10, 11:30
Prime Minister Suga has made the third amendment of this year, which includes additional economic measures, in order to ensure the economic recovery while striving to achieve both thorough socio-economic activities and thorough measures to prevent the infection of the new coronavirus. Instructed to formulate a budget plan.
The government's move to formulate a third supplementary budget is to support the economy with seamless support measures, but as the financial situation is worsening, how effective the budget is. The question is whether it can be allocated and lead to the recovery of the real economy.
Due to the influence of the new coronavirus, the Japanese economy saw a historic decline in GDP = gross domestic product growth rate from April to June, which was actually minus 28.1% per annum.
Preliminary GDP figures from July to September will be released on the 16th of this month, but forecasts by private research companies and others are that although they will improve significantly, they will not return to pre-infection levels. I am.
In addition, infections are spreading again in the United States and Europe, and the outlook for the world economy is becoming more uncertain.
Based on this situation, the government considers that seamless support measures are indispensable to support the economy, and organizes the third supplementary budget for this year and the budget for next year based on the concept of "15-month budget". It corresponds to.
Among these,
measures related to ▼ measures to prevent the spread of infection of the new corona, ▼ promotion of digitization, ▼ reduction of greenhouse gases, ▼ employment measures, ▼ disaster prevention measures, etc. are being considered.
However, the government's general account expenditure scale for this year has grown to a record high of 160 trillion yen, including the two supplementary budgets, and has already issued over 90 trillion yen of government bonds as its financial resources.
This year's budget is the worst ever, relying on government bonds for 56.3% of revenue.
In addition, this year's tax revenue is expected to decrease significantly from the initial forecast due to a decrease in corporate taxes due to the economic downturn, and the financial situation is expected to become even more severe.
For this reason, when formulating a budget, the question is how to effectively allocate the budget to individuals and companies that have been hit by the new coronavirus, which will lead to the recovery of the real economy.