Japan's gov't debt tops 900 tril. yen for 1st time: MOF+

TOKYO, Aug. 10 Kyodo -
The outstanding balance of Japan's central government debt hit a record high of
904.08 trillion yen at the end of June amid massive government bond issuance
and declining tax revenues, topping the 900 trillion yen level for the first
time ever, Finance Ministry data showed Tuesday.
The debt, including government bonds, borrowings, and financing bills, is
equivalent to almost 1.9 times the nominal gross domestic product in fiscal
2009, which totaled 476 trillion yen.
Prime Minister Naoto Kan has aimed to curb the swelling debt since taking
office in June, but the road toward fiscal consolidation has become even
rockier amid emerging signs of a slowdown in the recent economic recovery and
calls for more stimulus steps to buoy the economy.
Per-capita debt came to around 7.10 million yen based on Japan's estimated
population of about 127.42 million as of July 1.
The debt balance increased by 21.15 trillion yen from the level at the end of
March, when the ministry last released the data.
The ministry estimates that the central government's debt is likely to reach
about 973 trillion yen at the March 31 end of fiscal 2010.
After topping 800 trillion yen at the end of December in 2005, the debt was
hovering below 850 trillion yen until the end of March 2009 helped by an
increase in tax revenues and reductions of expenditures.
The debt balance has renewed its highest since it surpassed 860 trillion yen at
the end of June 2009, as the government issued a hefty amount of fresh bonds to
fund a host of steps to stimulate the economy, which was in a deep recession
following the 2008 financial crisis.
Out of the 904 trillion yen, the outstanding balance of government bonds
including fiscal investment and loan program bonds totaled 733.81 trillion yen,
up 13.32 trillion yen from the level at the end of March, while borrowings
amounted to 55.06 trillion yen, down 1.35 trillion yen.
Financial bills increased 9.18 trillion yen to 115.21 trillion yen.
Meanwhile, the outstanding balance of central and local government bonds,
excluding fiscal investment and loan program bonds, is estimated at 862
trillion yen at the end of fiscal 2010.
Under its medium-term fiscal management plan through fiscal 2013 announced in
June, the Kan government is aiming to keep annual spending below 71 trillion
yen, the same level planned for fiscal 2010, and government bond issuance below
44 trillion yen.
In its longer-term plan, the government will aim to bring the primary balance
for both the central and local governments back into surplus by fiscal 2020
after halving the deficit by fiscal 2015.
==Kyodo
2010-08-10 20:37:20


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