Japan may achieve fiscal consolidation in fiscal 2027, two years earlier than previously estimated, as tax revenue has been rising despite the coronavirus pandemic, the government said Wednesday.
Japan's primary balance — tax revenue minus expenses other than debt-servicing costs — is expected to turn black in fiscal 2027 with a surplus of about ¥1.8 trillion ($16.4 billion) under the most optimistic scenario, the Cabinet Office said in its biannual projection.
The previous forecast released in January said the balance would still be in the red with a ¥2.8 trillion deficit in the fiscal year through March 2028, and turn black in fiscal 2029.