Live Updates > Live Update Details
2026-02-17 13:54:22
[Japan's Bond Issuance May Increase by 28% Over Next Three Years, Prime Minister's "Tax Cuts Without Increased Debt" Vision Questioned] According to foreign media reports, Japan's Ministry of Finance forecasts that annual bond issuance may increase by 28% over the next three years due to rising debt financing costs. This trend has raised doubts about Prime Minister Sanae Takaichi's proposal to "cut taxes without increasing debt." The forecast shows that by the fiscal year beginning in April 2029, Japan will need to issue as much as 38 trillion yen (approximately US$248.32 billion) in bonds to fill the revenue gap, higher than the 29.6 trillion yen in fiscal year 2026. Although tax revenue is expected to continue to grow, it will still be insufficient to cover the increased social welfare spending due to rapid aging, as well as the rising debt repayment costs caused by rising long-term interest rates. Data shows that debt servicing costs are expected to reach 40.3 trillion yen in fiscal year 2029, a significant increase from 31.3 trillion yen in fiscal year 2026, accounting for approximately 30% of total expenditures. This highlights the enormous pressure that rising bond yields are putting on Japan's finances.
