Japan kept unchanged its timing for balancing the primary budget on Friday, but expects to see a much smaller excess than previously thought when it hits a budget surplus, underlining the government's struggle to rein in massive public debt.
Prime Minister Shinzo Abe's government stuck to its forecast of achieving a budget surplus by fiscal 2027, but expects it to be slimmer due to a downward revision to its outlook for economic growth and tax revenues since previous projections made in July.
In its twice-yearly fiscal and economic projections, the government now expects the primary budget, excluding new bond sales and debt servicing, to swing to a surplus of just ¥300 billion ($2.73 billion) in the fiscal year starting April 2027. The previous projection was a surplus of ¥1.6 trillion.