The government approved a key economic policy outline Friday that includes pushing back the goal of achieving a primary balance surplus by five years to fiscal 2025 on the back of its own optimistic economic growth prediction.
The move could further fuel concerns over the long-term fiscal soundness of the already debt-ridden national coffers. The primary balance — considered a key barometer of fiscal health — refers to a government's ability to meet government expenditures, excluding interest payments.
"We will keep checking to make sure we hit our fiscal goals," said economic and fiscal policy minister Toshimitsu Motegi at a news conference on Friday. "In terms of restraining spending, we are looking to set concrete goals by the end of the year."