The government will issue an additional ¥1.8 trillion ($15.2 billion) in bonds this fiscal year to make up for a shortfall in tax revenue and to help pay for a third extra budget, according to government sources.
Reflecting sluggish corporate tax revenue, the government will cut its fiscal 2016 tax revenue estimate by ¥1.7 trillion to ¥55.9 trillion, the sources said.
For the first time since fiscal 2009, the government has slashed its tax revenue estimate and been compelled to issue additional deficit-covering bonds in the middle of a fiscal year.