Tokyo, January 23 (QNA) – Japan’s fiscal health has been deteriorating on an “unprecedented” scale after massive spending amid the COVID-19 pandemic and Russia’s war in Ukraine, Japanese Finance Minister Shunichi Suzuki said Monday, saying it is crucial to secure fiscal space for the debt-ridden nation in case of future crises.
Suzuki noted in his parliamentary speech that the environment surrounding Japan’s economy is becoming “increasingly severe” due to rising prices and fears of a global economic slowdown caused by monetary tightening, Japan’s (Kyodo) news agency reported.
The finance minister said that the government will aim for economic revitalization before fiscal reconstruction, calling for the swift passage of a record 114.38 trillion yen ($885.3 billion) budget for fiscal 2023 starting in April, which was submitted to parliament on Monday.
The draft budget includes funds to help alleviate households hit by inflation that has accelerated at its fastest pace in decades, alongside plans for record defense spending as Japan aims to reinforce its capabilities amid security threats from China, North Korea and Russia.
The size of the world’s third-largest economy, measured in real gross domestic product, is expected to increase to a record 558.5 trillion yen in fiscal 2023 while the rise in core consumer prices will slow to 1.7 percent from 3.0 percent in fiscal 2022.
The government expects real growth to be around 1.5 percent and around 2.1 percent in nominal terms in fiscal 2023. (QNA)
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