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Japan Tweaks Budget Goal Wording to Gain More Fiscal Flexibility

  • FY2025 budget balance goal is no longer spelled out in plan
  • Kishida likely to seek further spending in New Capitalism push

Japan’s government loosened the wording around its balanced budget commitment in changes that suggest it is seeking more fiscal flexibility as it tries to shore up the economy’s recovery from the pandemic.

In a draft of its latest annual fiscal policy plan released Tuesday, the government said it’ll continue with its existing goal to seek fiscal health, but removed a direct reference to balancing the nation’s books by the end of fiscal 2025.