New JGB issuance pared by ¥2 trillion

Kyodo

The central government curbed new debt issuance by ¥2 trillion in fiscal 2013 as corporate tax revenue grew on the back of an improvement in business performance, sources said Monday.

As a result, the total amount of Japanese government bonds issued last fiscal year was around ¥43.4 trillion, they added.

Government tax revenue is estimated to have reached ¥46.9 trillion in fiscal 2013 through March, about ¥1.6 trillion more than projected, the sources said.

Meanwhile, a ¥1.4 trillion surplus is forecast for last fiscal year. Legislation stipulates that, in principle, at least half of the surplus must be used to pay back government bonds.

But some government officials and lawmakers may ask Prime Minister Shinzo Abe to use the surplus to fund new economic stimulus measures or fund a proposed corporate tax cut that would start next fiscal year.