In fiscal 2006, the government will issue under 30 trillion yen in bonds for the first time in eight years, leaving the nation 11.2 trillion yen short of achieving a primary balance — the condition where expenditures, excluding interest payments and debt redemptions, are covered by revenues excluding bonds.

This is a major improvement from fiscal 2003, when the state fell 19.8 trillion yen short of a primary balance. In addition to recent efforts to make government expenditures more efficient, tax revenue has expanded, thanks to the economic recovery.

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