Japan’s Record Tax Haul Leaves Questions Over Ishiba’s Pledge

Japan’s tax revenues hit a record of around ¥75.2 trillion ($524 billion) in the fiscal year ended March, surpassing government forecasts by ¥1.8 trillion. But the windfall still left questions over how Prime Minister Shigeru Ishiba will fund his cash handouts, a key election pledge.

The total marks a fifth consecutive year of record tax receipts, up from ¥72.1 trillion the previous year and ahead of the earlier estimate of ¥73.4 trillion, the Finance Ministry said Wednesday. Robust corporate earnings and persistent inflation were key drivers. Yet a ministry official explained that the government’s proposed handouts won’t be funded by money left over from last year’s account, but instead from what’s left in this year’s accounts.