Japan's national debt to exceed $13.5 trillion

Japan's national debt is likely to top 1,000 trillion yen, or 13.1 trillion dollars, for the first time at the end of the current fiscal year next March.

The Finance Ministry estimates that Japan's outstanding debt, including government bonds and borrowings, will swell to more than 1,024 trillion yen, or 13.5 trillion dollars, at the end of fiscal 2011.

The figure is up more than 1.3 trillion dollars from the amount a year earlier.

The record debt is due to the issuance of government bonds worth 152.3 billion dollars to fund a third supplementary budget for reconstruction from the March 11th disaster. The government submitted the budget bill to the Diet on Friday.
The government plans to cover the extra budget mostly with temporary tax increases. But it will be earmarked as outstanding debt as of March 31st.

If the Diet approves the bill, expenditures in the general account for the current fiscal year are to be expanded to a record 1.4 trillion dollars.

The national debt in the initial budget for fiscal 2011 has exceeded tax revenue for 2 consecutive years.

Japan' fiscal standing is the worst among developed nations and concern exists about its impact on the global economy.

Saturday, October 29, 2011 09:47 +0900 (JST)