Government debt that is over 2.5 times the size of the economy. A record budget for the current fiscal year. Targets on sustainable government spending that are unlikely to be met.
Concerns over fiscal health have long loomed over Japan, but they’ve gained a renewed focus lately due to budget discussions for the coming fiscal year and the fallout from the Liberal Democratic Party political funds scandal, with the latter possibly shifting the way the ruling party views government spending.
Key to that is the spectacular downfall of the LDP faction previously led by the late former Prime Minister Shinzo Abe and the possible emergence of new forces within the party.