The Abe administration is boasting that its general account budget for fiscal 2014 — totaling a record ¥95.88 trillion — reflects its resolve to achieve the dual tasks of pulling the nation out of decades-old deflation and restoring fiscal health to the government.
Experts, however, say it fails to show that the Abe team is serious about revising the debt-driven fiscal structure as more than 40 percent of the budget will be paid for through new debt issuance.
The administration plans to issue ¥41.25 trillion in new bonds, down ¥1.6 trillion from fiscal 2013. It also expects more than ¥50 trillion in tax revenue, counting on a ¥5 trillion rise thanks to the consumption tax hike in April to 8 percent as well as an increase in revenue due to an uptick in the economy.