Japan Pledged To Balance Its Budget In 10 Years To Curtail the Country’s Debt
Japan’s government pledged to balance its budget in 10 years and reduce bond sales in a move to bolster investor confidence that it is working towards containing its debt, the world’s largest public debt. The plan calls for balancing the budget, excluding interest payments on bonds, by the year ending March 2021. Japan said that it planned to cap annual spending at ¥71 trn yen (US$781bn) over the next three years and tax changes will be unveiled soon. Under the proposed plan, ministries will follow a “pay-as-you-go” principle when compiling the budget, meaning policymakers must secure funds before seeking extra spending. The government last week also indicated that it is considering increasing the country’s 5% sales tax to enhance its revenue.
The World Economy... - 23/6/2010
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