— Japan Budget Plan: New Bond Issues Within Govt Target
— Japan Budget: New Bond Issues Above Tax Revenues For 3 Yrs
TOKYO (MNI) – The government of Japanese Prime Minister Naoto Kan
approved on Friday a record Y92.411 trillion budget plan for fiscal
2011, above the Y92.299 trillion for the initial fiscal 2010 budget.
According to the plan, general-account spending, excluding
debt-servicing costs, will total Y70.862 trillion, down slightly from
Y70.931 trillion for this fiscal year.
New government bond issues will be Y44.298 trillion, down
slightly from Y44.303 trillion this year.
These figures are within the government’s targets. The fiscal
framework endorsed by the cabinet in June called for capping
general-account spending at Y71 trillion and limiting new-bond issuance
to Y44 trillion in the fiscal 2011 budget.
The ratio of new government bond issuance to the overall budget
will be 47.9%, improving slightly from 48.0% this fiscal year.
Tax revenues will total Y40.927 trillion, up from Y37.396 trillion,
thanks to expected economic improvement. Revenues from withholding taxes
will increase by Y1.018 trillion yen from this fiscal year, while those
from corporate tax will be up by Y1.839 trillion.
Despite the improvement, tax revenues will be below new government
bond issuance for the third straight year.
tokyo@marketnews.com
** Market News International Tokyo Newsroom: 81-3-5403-4838 **
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