Japan targets ¥40 trillion bond issuance cap for FY2027
Japan aims to cap new bond issuance at ¥40 trillion for FY2027, PM Takaichi says, citing higher tax revenues.
Prime Minister Sanae Takaichi has said the government intends to hold new bond issuance to roughly 40 trillion yen ($251 billion) in the fiscal 2027 budget, signalling a continuation of its current fiscal discipline.
In an interview with the Yomiuri newspaper, Takaichi noted that increased tax revenues had already allowed the government to keep new bond issuance near the 40 trillion yen mark in the fiscal 2025 budget, even after accounting for an extraordinary supplementary budget. This represented a decline from the previous year's level.
"We will continue with the same approach going forward," she said.
The remarks come as budget requests from Japanese ministries and agencies for the next fiscal year are projected to exceed 130 trillion yen, which would mark a record high for the fourth consecutive year.
The government's ability to restrain bond issuance despite rising spending pressures will be closely watched as it balances fiscal consolidation with growing demands on public finances.