A Tough Choice For Japan To Raise Consumption Tax As The Economy Slows
A slowdown in Japan’s economic recovery from its worst postwar recession suggests that the economy may be too weak to sustain the higher consumption taxes being considered by the newly appointed Prime Minister. Earlier, in a move to contain the country’s public debt, the Prime Minister indicated that he was considering raising the sales tax to 10% from 5% currently. The administration also pledged to balance the budget by fiscal 2020 and cap public spending for the next three years.
The World Economy... - 1/7/2010
Showing posts with label Japan. Show all posts
Showing posts with label Japan. Show all posts
Thursday, July 1, 2010
Wednesday, June 23, 2010
The World Economy... - 23/6/2010
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
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
Thursday, June 3, 2010
The World Economy... - 3/6/2010
Japan Is In Political Struggle Again That May Hammer Its Efforts To Cut Debt
Japan’s Prime Minister, Yukio Hatoyama, resigned yesterday, as money scandals and a broken promise to move US troops forced him to step down. The Prime Minister lost credibility with voters after breaking a campaign promise by deciding last week to uphold an accord reached between a previous LDP-led administration and Washington to keep US forces in Okinawa. The decision angered the Social Democratic Party of Japan, which abandoned the coalition government in protest, and drove the Prime Minister’s support ratings to 20%, comparable to his predecessor, Taro Aso, just before the LDP’s defeat last summer. The Prime Minister’s term was the shortest for a Japanese leader since 1994, and his resignation will force parliament to select the nation’s fifth prime minister in four years. The end of the Hatoyama administration highlights the difficulties of achieving political change in Japan, which has suffered four recessions and persistent deflation since 1990. As a result, stocks fell and the yen weakened on concern political instability may hamper Japan’s efforts to cut public debt, the world’s largest, ahead of mid-term elections next month. Ratings companies have signaled that they are awaiting the government’s budget proposals to assess Japan’s credit standing.
The World Economy... - 3/6/2010
Japan’s Prime Minister, Yukio Hatoyama, resigned yesterday, as money scandals and a broken promise to move US troops forced him to step down. The Prime Minister lost credibility with voters after breaking a campaign promise by deciding last week to uphold an accord reached between a previous LDP-led administration and Washington to keep US forces in Okinawa. The decision angered the Social Democratic Party of Japan, which abandoned the coalition government in protest, and drove the Prime Minister’s support ratings to 20%, comparable to his predecessor, Taro Aso, just before the LDP’s defeat last summer. The Prime Minister’s term was the shortest for a Japanese leader since 1994, and his resignation will force parliament to select the nation’s fifth prime minister in four years. The end of the Hatoyama administration highlights the difficulties of achieving political change in Japan, which has suffered four recessions and persistent deflation since 1990. As a result, stocks fell and the yen weakened on concern political instability may hamper Japan’s efforts to cut public debt, the world’s largest, ahead of mid-term elections next month. Ratings companies have signaled that they are awaiting the government’s budget proposals to assess Japan’s credit standing.
The World Economy... - 3/6/2010