The Japanese government plans that the annual budget for fiscal year 2022 - which is expected to be approved on Friday - will be about 107.6 trillion yen, which is the highest value ever. The increase in the size of the budget is associated with the costs of fighting the coronavirus and an increase in social security spending.
Starting in April 2022, the authorities intend to issue bonds worth more than 30 trillion yen, which will cover the deficit to finance the budget for the next fiscal year.
Meanwhile, the government expects an increase in tax revenues in fiscal year 2022, which will reduce the issuance of new bonds compared to the current fiscal year. In addition, the government plans to use 5 trillion yen from pandemic-related reserves to finance spending.
According to official data, the amount of Japan's public debt is the largest among developed countries, which is due to many years of intensive stimulation and an increase in social security spending.