Japan's goal to restore its fiscal health, the worst among developed countries, is still far off amid prospects for tepid economic growth and swelling spending on health, pensions and defense.

Furthermore, reining in spending and boosting tax revenue have become more difficult since a consumption tax hike was twice postponed and the yen appreciated against the U.S. dollar to the detriment of exporters' profits.

As difficulties mount, many economists believe Japan will not be able to meet its target of achieving a primary surplus by fiscal 2020 as internationally pledged, let alone an interim milestone set for fiscal 2018.